UPDATE: August 12, 2019 – Spreadsheet updated to now show #DRIP status as well as Dividends Received on the same tab, named for the year that they are received. DTC comments have been eliminated as that status can be inferred from the other data presented and is not as important. The ‘Dividend Histories’ tab has been moved to the far right of the workbook.
The DTC Discount Plan allows reinvestment at a potential discount price between 0-5%. Although the DTC Discount Plan offers the benefit of a possible discount, please note the following:
-DTC guidelines state that discounted reinvestment prices can take on average up to 15 business days to post. You will still receive the reinvestment, but it may not be posted to your account immediately.
-The issuer determines the DTC discount price. Your broker cannot provide any reinvestment information until the reinvestment appears in the account.
Additionally, because your broker does not determine the discount price, they cannot provide DTC calculations.
-The eligibility of a security may change after you enroll in dividend reinvestment.
A security may be DTC discount eligible when you enroll in the service, but it could change its status to DTC discount ineligible.
-If a position is sold while waiting for the DTC dividend reinvestment, your broker credits the account with cash, not stock.
DTC = Depository Trust Company.
Below is old news…
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.
UPDATE: June 28, 2019 – Spreadsheet updated with a little help from my StockTwits friend, “PennyWeasal” (Jim)
UPDATE: July 26, 2019 – Spreadsheet updated (again!) with a little *more* help from my StockTwits friend, “PennyWeasal” (Jim) – Another tab was added with more info from previous iteration(s) of the DRIP spreadsheet(s). It’s also on my Google sheets and is labeled ‘Corrected Copy of Dividend Histories’, on the far right. It should be noted that at some point in past history an attempt was made to determine the amount of some of the discounts, and those amounts show in the ‘Comment’ Field.
The NEW TAB Dividend Histories contains all the previous entries and will now contain all the future entries as of 6/28/2019. You can filter by; Symbol, Pay Date, DRIP Date, # of days, Comments, and Price.
Each tab of the spreadsheet used to represent 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.
I’ve since moved the DRIP spreadsheet to my “holdings” spreadsheet (in a separate tab), and I asked my friend Jim to tell me if he could “filter” the columns like I can. Since *I* can edit, and supposedly everyone else cannot (right, Google?), this was a valid question. This is his emailed response;
The three different flavors I’ll lay out on this page are:
- Market DRIP
- Discount (or DTC discount-eligible) DRIP
- DRIP @ NAV
Market DRIP
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.
If you click this link, it will take you to my holdings spreadsheet where you can find the “Dividend Histories” tab. It looks something like this;
