DRIPS

[Jimbo]

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

[Main Street Stock Investor]

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-...t-strategy

M$$I

[rapidacid]

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

[Kerim]

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.

[Jimbo]

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

[ChadR]

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.