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Helpful Hints
The expanded DRIPs with SPPs chart is published at least twice annually in the
print edition of Canadian MoneySaver. However, I do want to stress that you may use the toll-free numbers to speak with a representative of each company's administrator for their plan. For example, you may want to learn about the buyback program for shares, or how the purchase price for new acquisitions is determined, or ask questions about other matters of interest.
Inco made the following announcement on February 26, 1999 to participants of their DRIP and SPP: "On February 10, 1999 the Board of Directors of Inco Limited eliminated the payment of cash dividends on Inco Limited's Common Shares. Accordingly, until such time as the Board of Directors determines to restore the declaration and payment of cash dividends on the Company's Common Shares, the operation of Inco's Optional Stock Dividend Program (the "Program") will be suspended.
During this period when there are no cash dividends, the Company's Share Purchase Plan will remain in effect and participants may continue to elect to make optional cash payments to purchase additional Inco Limited Common Shares on a quarterly basis." The SPP has also been discontinued as of January 2003, until further notice. If you have any questions, contact Inco's transfer agent (administrator).
Recently a subscriber, K.B., requested the explanation of the following terms:
JT TEN and JT WROS both mean joint tenant with right of survivorship, i.e. when one of the 2 owners dies, the shares go to the other owner without going through the estate (and being probated).
TEN COM means when the owner dies, the shares do go through the estate to the beneficiaries. You do have a choice when registering your shares.
The following helpful hints were triggered by recent correspondence from subscribers.
- You require one share of qualifying DRIP with SPP companies to participate in their plans. You may purchase and register it in your name through a brokerage, Moneypaper (see "Member Benefits") or from a current owner. Your share is held in trust by the company's trustee. Request the DRIP and SPP applications from the company's trustee after you have the share registered in your name (not the brokerage's name).
- D.W. of Woodstock asked Jim Otar to recommend web sites that offer information on DRIPs with SPPs. Jim suggests the bests sites are:
www.canadianmoneysaver.ca and www.stingyinvestor.com.
- Foreign companies' stocks trade on U.S. exchanges in the form of American Depositary Receipts. They permit you to invest globally through their DRIPs. Two web sites with ADR information are
www.adr.com (J.P. Morgan) and www.bankofny.com (Bank of New York). There are 80 direct purchase ADRs you may enroll in on J.P. Morgan's site.
- Data on minimum-maximum investments for each company, its sector, investment dates, discount on DRIPs and their toll-free trustee (transfer agent) telephone number are provided at least twice annually.
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