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Canadian DRPs
Canadian SPPs
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In order to enroll in a dividend reinvestment or share purchase plan you need to have at least one share of the company certified in your name.
Unfortunately, there are fees related to buying a share and then having a certificate mailed to you. The table below shows the fee that is currently charged by Canadian Discount brokers.
| Broker | One Share Commission | Registration Fee (+GST) | Total |
| Online Trade (Market Order) | |||
| BMO | $25.00 | $30.00 | $55.00 |
| Canada iNvest | $22.95 | $35.00 | $57.95 |
| CIBC | $25.00 | $30.00 | $55.00 |
| Disnat | $29.00 | $30.00 | $59.00 |
| eNorthern | $24.00 | $30.00 | $54.00 |
| ETrade | $26.99 | $50.00 | $76.99 |
| HSBC | $29.00 | $30.00 | $59.00 |
| NA | $24.95 | $50.00 | $74.95 |
| Royal | $29.95 | $50.00 | $79.95 |
| Scotia | $25.95 | $50.00 | $75.95 |
| TD | $29.00 | $50.00 | $79.00 |
| Phone Trade (Market Order) | |||
| BMO | $40.00 | $30.00 | $70.00 |
| CIBC | $43.00 | $30.00 | $73.00 |
| Disnat | $45.00 | $30.00 | $75.00 |
| eNorthern | $44.00 | $30.00 | $74.00 |
| ETrade | $61.99 | $50.00 | $111.99 |
| HSBC | $43.00 | $30.00 | $73.00 |
| NA | $41.95 | $50.00 | $91.95 |
| Royal | $43.00 | $50.00 | $93.00 |
| Scotia | $39.95 | $50.00 | $89.95 |
| TD | $43.00 | $50.00 | $93.00 |
| Data as of Oct 31 2003 | |||
Broker DRIP Plans
Many Canadian discount brokers have DRPs, although none offer SPPs. With these plans you don't need to register your shares and your broker keeps track of everything for you. However, the details of each broker's DRP offering is different.
I phoned around to obtain the plan details, and I've had poor experiences with customer representatives. So, you should check the details before enrolling!
| Broker DRPs | |
| Broker | Details |
| BMO | No Cost. Whole shares only. ~50 Canadian stocks available. Entire account put into DRIP. |
| CIBC | Whole shares only. All Canadian and US stocks that pay regular dividends are available. Entire or partial enrollment available. |
| Disnat | No DRIP offered |
| ETrade | No DRIP offered |
| Hongkong Bank | No cost. Whole shares only. ~50 Canadian stocks available. Entire or partial enrollment available. |
| National | Whole shares only. No Cost. ~50 Canadian stocks available. |
| Schwab Canada | Initial $10/stock & $2.50/dividend. Fractional shares. Any TSE stock with US stocks shortly. Entire or partial enrollment available. |
| Scotia | No cost. Whole shares only. ~50 Canadian stocks available. Entire or partial enrollment available. |
| Royal | No cost. Whole shares only. ~500 Canadian & US stocks available. Entire account must be in the DRIP. |
| Sunlife | Initial $10/stock & $2.50/dividends. Fractional shares. ~25 Canadian stocks. Entire or partial enrollment available. |
| TD | Whole shares only. $1/dividend. Most TSE & US stocks are included. Entire or partial enrollment available. |
| Data as of 1/29/2001 | |
Alternate DRIP & SPPs
I should mention that there are a number of organizations which offer easy access to such plans. They will allow you to purchase the first share through and sell your shares directly though their plans. However, keep an eye on the fees since they can be much more expensive than company run DRIP and SPP plans.
Canadian: Canadian Shareowners Association
US: The Money Paper
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A Dan Hallett and Associates Inc. publication. Norm Rothery, Ph.D., CFA, is the Chief Investment Strategist at Dan Hallett and Associates Inc. (DH&A) and the founder of StingyInvestor.com. DH&A is registered as Investment Counsel in the province of Ontario. Norm, DH&A, or related-parties may have an interest in the securities mentioned. More...