I’ve made a matrix (i.e.; spreadsheet) to show the date the dividend was received, when it was reinvested and the number of days it took, and my comment on whether it was a market or discount or even a NAV reinvestment. I also mark the price of the re-investment.
Each tab of the spreadsheet represents one month and the entries on that page begin with the date the dividends are paid, followed by the date the dividends are re-invested and the re-investment price. So, even though some dividends are re-invested the month following payment they will still be entered on the page the dividends were initially paid. This wasn’t clearly defined previously and this new policy began with dividends paid and posted in October, 2018.
The three different flavors I’ll lay out on this page are:
- Market DRIP
- Discount (or DTC discount-eligible) DRIP
- DRIP @ NAV
When your dividends reinvest at market, or current share price, you are simply buying more shares with your dividends at market prices. There usually isn’t a long wait between dividend payment and reinvestment. This is the least efficient method of dividend reinvestment.
Discount (or DTC discount-eligible) DRIP
When your dividends reinvest at a possible discount (or the holding is DTC discount-eligible), you are simply buying more shares with your dividends at a discount to market prices. The discount is usually determined by the paying company, and it usually takes a week or more for the reinvestment to take place. This is more efficient than ‘Market DRIP’, but less efficient than ‘DRIP @ NAV’.
DRIP @ NAV
When your dividends reinvest at NAV, or Net Asset Value, you are simply buying more shares with your dividends at NAV prices. Now, obviously this would only work in the shareholder’s favor if the issue is trading at a premium to NAV. This is also determined by the paying company. This is the most efficient method of dividend reinvestment.
Monthly #DRIP record (beginning in May, 2018 and updated monthly) https://1drv.ms/x/s!AvfmFn4IPbHCgYw1lk-HMTvx6_NHMQ