Dividend Reinvestment Services

A dividend reinvestment plan (DRIP) is an effective way to lower capital costs and offer investors an easy way to increase their investment in your company.  As your plan administrator, CIBC Mellon combines top-rated service, expertise and sophisticated technical support systems to make your plan run smoothly.

DRIP benefits 

• A steady, new source of low-cost capital from long-term investors
• A larger, more stable and widely distributed investor base
• Increased liquidity for your shares
• Reduced trading volatility
• Enhanced public visibility and marketing advantage
• Direct access to more of your investors

We support a variety of plan options: 

• Optional cash purchases
• Discounts on dividend reinvestment and optional cash purchases
• Investor-paid transaction fees 
• Single purpose RRSP
• Pre-authorized chequing
• Open market or treasury purchases

We can help you to design a plan that will interest your target investors, and encourage their participation. Your plan could include: 

• Minimum and maximum contribution levels
• Contribution frequency
• The level and scope of discounts
• Allocation of plan expenses
• Allocation of transaction costs

How DRIP benefits your investors: 

• Builds security holdings easily and automatically, with low or zero commission charges and transaction costs 
• Facilitates immediate re-investment of dividends, and purchases of additional shares
• Generates automatic recordkeeping, detailed account statements and complete tax reporting
• Facilitates automatic cash contributions
• Reduces exposure to market price fluctuations through dollar cost averaging