Dividend reinvestment is a smart route for you and your shareholders to take.
We’ll direct the ins and outs.
Dividend reinvestment summary and overview
A dividend reinvestment plan (DRIP) is offered by a company that allows shareholders to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. A DRIP is an excellent way to increase the value of an investment. Dividend Reinvestment Plans can also offer a Stock Purchase Plan Feature. This feature allows shareholders to purchase additional shares by sending in funds via a personal check or EFT withdrawal.
Advantages to offering a Dividend Reinvestment and Stock Purchase Plan
A dividend reinvestment and stock purchase plan allows your shareholders to purchase shares over a period time in a simple and cost effective way so they can maximize their long term commitment to your company. Continental can administer your current DRIP plan or you can take advantage of Continental’s Bank Sponsored Direct Stock Purchase Plan. This plan offers the additional feature of allowing investors to purchase their initial shares through the plan.
Advantages for shareholders who participate in Dividend Reinvestment and Stock Purchase Plans
Shareholders purchase shares over a period of time by a process called dollar-cost averaging – averaging out the price at which you buy stock as it moves up or down over a long period. Using this system, you are never buying the stock right at its peak or at its low. Dividend reinvestment and stock purchase plans allow shareholders to purchase shares with cash contributions as well as their dividends. Shares are often purchased with little or no broker commission. Shares are held at Continental in book position and statements are sent to the shareholder at designated intervals. Most plans allow shareholders to sell some or all of their plan shares.
Continental’s Bank Sponsored Dividend Reinvestment and Stock Purchase Plan
Continental offers our own Bank Sponsored Dividend Reinvestment and Stock Purchase Plan. This plan is a great way to provide your shareholders and non shareholders a simple, cost effective way to purchase additional shares of your stock. Here are some of the plan’s features:
- Purchase initial shares through the plan
- Reinvest all or part of your dividend
- Purchase additional shares through optional cash contributions
- Receive Monthly statements
- Sale shares on a weekly basis
For information regarding Dividend Reinvestment and Stock Purchase Plans please email firstname.lastname@example.org.