+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Other Dividend Growth Forum Stuff (http://DividendGrowthForum.com/forumdisplay.php?fid=18)
+--- Forum: Off Topic (http://DividendGrowthForum.com/forumdisplay.php?fid=24)
+--- Thread: DRIPS (/showthread.php?tid=772)
DRIPS - Jimbo - 12-01-2014
So I have a quick question,
On Friday, Last, I see in my online portfolio that my COP DRIP is set to happen on Monday 12-1-14, the shares are purchased at 73.80 per share.
OK, Im happy. But wait, the bottom of the floor fell out and the price is not that but some less, $66 and change, there is a discrepancy.
Is this normal, I notice on my other DRIPS, this is not the case, regardless I am sure I will call this broker and give him an earful tomorrow, it is not much money but hey, I aint rich.
Any insight??
Jim
RE: DRIPS - Main Street Stock Investor - 12-02-2014
Jimbo,
See my aticle on DRIPs at SA for another approach to reinvesting dividends. It's not for everyone, but it is the way I deal with this.
http://seekingalpha.com/article/2708555-an-alternative-way-to-execute-a-dividend-reinvestment-strategy
M$$I
RE: DRIPS - rapidacid - 12-02-2014
Jimbo,
That definitely sounds weird.
I don't DRIP but I didn't receive my COP dividend until the early hours of 12/1 ... Oil dropped before the 1st so you should've definitely bought in the 60's
Do you work with a super small broker? Seems all this stuff is automated.
Pete
RE: DRIPS - Kerim - 12-02-2014
I think some DRIPs work like mutual funds, where you are not purchasing in "real-time" at the current spot price. Rather, they aggregate funds and make purchases at end of day prices, or maybe even with a lag of a few days. I doubt they are trying to screw you and that if the price moved in the other direction, you might just as easily have benefitted from the lag. In any case, I suspect you're going to get some variation of the "administrative processing" answer.
RE: DRIPS - Jimbo - 12-02-2014
So according to the broker the DRIP is set to transact at ex-div date.
Bad idea if you ask me, could be productive sometimes.
One reason I have pulled 3 separate accounts and transferred to another online broker.
Jim
RE: DRIPS - ChadR - 12-02-2014
I use ETrade and they use the average of the day. So my DRIP was at $66.09. I'm sure every broker has their own method.