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DRIPs and DSPPs

DRIPs and DSPPs Services

Mostto’s Dividend Reinvestment Plan (DRIP)

Dividend reinvestment plans (DRIPs) are offered by companies and enable shareholders to buy more shares or fractions thereof at the time of the dividend payment with the cash that would otherwise be distributed to them. Using a DRIP is an excellent method of increasing the size of a holding. Direct stock purchase plans (DSPP's) sometimes also enable you to add to your holding by acquiring additional stock directly from a company or stock transfer agent – many times fee free and occasionally at a discounted price. A DSPP can be established to buy and then reinvest stock via a DRIP automatically.

Benefits of DRIPs and DSPPs

A DRIP and DSPP enables your shareholders to buy shares over an extended timeframe straightforwardly and economically, which enhances their commitment to your company. Mostto offers to provide the administration for your existing DRIP or you can benefit from Mostto’s DSPP. This method provides shareholders with the additional benefit of buying their initial shares via the plan.

Benefits for shareholders who use DRIPs and DSPPs

Shareholders buy stock holdings over an extended timeframe by what is known as dollar-cost averaging. This means averaging out the price at which shares are bought as purchase prices rise and fall over weeks, months and years. With dollar-cost averaging you never acquire stock right at its highest or lowest price. DRIPs and DSPPs also enable shareholders to buy more stock with additional cash in addition to using their dividends. Shares can commonly be bought with reduced or even without any commissions being paid. Shares are retained by in book positions, and statements are forwarded to the beneficial owners on agreed dates. The majority of plans permit shareholders to sell a part or the whole of their shares.

Mostto Group Ltd’ DRIP and DSPP

Continental offers an in-house DRIP and DSPP which are a beneficial method of enabling existing and new shareholders to have a straightforward and economical way to buy additional shares in your company. Some of the plans’ features are:

  • Ability to buy the initial shares via the plan
  • Ability to reinvest all or some of your dividend
  • Ability to buy more shares via voluntary cash contributions
  • Regular statements
  • Ability to sell shares on a weekly or monthly basis

Please contact us for more information about Mostto Group Ltd DRIPs and DSPPs