Archive for the ‘DRIPs’ Category

DRIP on TRP Preferreds

Monday, February 27th, 2023

According to TC Energy:

Dividend Reinvestment and Share Purchase Plan
Allows registered common and preferred shareholders to reinvest their cash dividends in additional common shares of TC Energy. Participants are not required to pay brokerage commissions or administrative fees.

Beginning with dividends declared on July 27, 2022, common shares purchased with reinvested cash dividends are issued from Treasury at a 2% discount to the daily average of the weighted average price of all common shares of the Corporation traded on the Toronto Stock Exchange during each of the five trading days preceding the applicable dividend payment date.

Full investment of all funds is possible since fractional shares are also credited to the participant’s account. Statements of Account are mailed to participants each quarter detailing the investments made on their behalf.

Optional cash payments
Participants in the plan may make optional cash payments of up to $10,000 per quarter to purchase additional common shares.

Optional cash payments may be made at any time, but payments must be received by our Plan Agent, Computershare Investor Services, Inc. at least three business days prior to the dividend payment dates which are generally the last business day of each of January, April, July and October.

Optional cash payments can be made through the authorization/enrollment form (below).

How to enroll
Beneficial shareholders may be able to enroll through their brokerage firm and should contact their broker. Registered shareholders are required to complete the authorization/enrollment form (below).

The following TRP preferreds are outstanding: TRP.PR.A, TRP.PR.B, TRP.PR.C, TRP.PR.D, TRP.PR.E, TRP.PR.F, TRP.PR.G, TRP.PR.H and TRP.PR.I.

DRIP On RY Preferreds

Sunday, February 12th, 2023

This is old (2022-11-30), but I realized that I allude to this in PrefLetter but not on PrefBlog, so here you go:

Royal Bank of Canada has announced (on 2022-11-30):

In lieu of receiving their dividends in cash, holders of the Bank’s common and preferred shares who reside in Canada and holders of common shares who reside in the United States may elect to have their dividends reinvested in additional common shares of the Bank, in accordance with the Bank’s Dividend Reinvestment Plan (the “Plan”).

Under the Plan, the Bank is entitled to determine whether the additional common shares are purchased in the secondary market by the agent for the Plan or issued from treasury. For the February 24, 2023 dividend and for future dividends declared until further notice, the Bank has decided to issue additional shares from treasury at a 2% discount from the Average Market Price (as defined in the Plan). Most recently, the common shares received by participants under the Plan were purchased in the secondary market with no discount from the Average Market Price.

Shareholders who currently participate in the Plan and who continue to do so on the February 24, 2023 payment date will automatically have the discount applied to the reinvestment of their dividends. Registered holders of record residing in Canada or the United States who wish to participate in the Plan can obtain an enrollment form from the Bank’s Plan agent, Computershare Trust Company of Canada, from their website at www.investorcentre.com/rbc, or by calling 1-866-586-7635. Eligible beneficial or non-registered holders of the Bank’s common and preferred shares must contact their financial institution or broker if they wish to participate in the Plan.

In order to participate in the Plan in time for the February 24, 2023 dividend payment date, enrollment forms from registered holders must be received by Computershare Trust Company of Canada at 100 University Avenue, 8th Floor, Toronto, Ontario M5J 2Y1 before the close of business on January 26, 2023. All shareholders considering enrollment in the Plan should carefully review the terms of the Plan and consult with their advisors as to the implications of enrollment in the Plan.

Registered participants in the Plan who would prefer to receive a cash dividend rather than reinvest their dividends on and after February 24, 2023 may terminate their participation in the Plan by delivering written notice to Computershare Trust Company of Canada at the above address by no later than January 26, 2023. Beneficial or non-registered participants in the Plan should contact their financial institution or broker in advance of January 26, 2023 for instructions on how to terminate participation in the Plan so that the February 24, 2023 dividend is not reinvested in common shares.

A 2% discount on the common may not sound like much, but it’s better than a kick in the pants!

The following RY preferreds are outstanding: RY.PR.H, RY.PR.J, RY.PR.M, RY.PR.N, RY.PR.O, RY.PR.S and RY.PR.Z.

DRIP on CM Preferred

Saturday, December 10th, 2022

Canadian Imperial Bank of Commerce has announced:

that it is offering a 2% discount on its common shares issued from treasury under the CIBC Shareholder Investment Plan (the “Plan”).

Under the Plan, CIBC offers the Dividend Reinvestment Option for Canadian residents and the Stock Dividend Option for US residents, to reinvest dividends, respectively, on their CIBC common shares and preferred shares in the form of CIBC common shares in lieu of receiving their dividends in cash. Canadian resident shareholders may also purchase additional common shares under the Share Purchase Option.

Common shares issued under the Dividend Reinvestment Option and the Stock Dividend Option will be issued from treasury at a 2% discount from the Average Market Price (as defined in the Plan). The discount will not apply to common shares purchased under the Share Purchase Option of the Plan. This change will be effective starting with the dividend payable on January 27, 2023 to common and preferred shareholders of record on December 28, 2022, and will continue until further notice. Previously, common shares received by participants under the Plan were issued from treasury with no discount from the Average Market Price.

Existing participants in the Plan will automatically have the discount applied to the reinvestment of their dividends on the January 27, 2023 dividend payment date. Registered shareholders resident in Canada or the United States wishing to join the Plan can obtain an enrolment form from CIBC’s agent, TSX Trust Company (Tel: 416-682-3860 from Toronto; 1-800-258-0499 from elsewhere in Canada or the United States; or e-mail at shareholderinquiries@tmx.com). Eligible beneficial or non-registered shareholders must contact their financial institution or broker to find out details on how they can participate.

In order to participate in time for the January 27, 2023 dividend payment date, enrolment forms from registered shareholders must be received by TSX Trust Company before the close of business on December 19, 2022. Eligible beneficial or non-registered shareholders should contact their financial institution or broker well in advance of the above date for instructions on how to enroll in the Plan.

Existing registered participants in the Plan who would prefer to receive a cash dividend rather than reinvest their dividends on and after January 27, 2023 must deliver written notice to TSX Trust Company at the above address by no later than December 19, 2022. Eligible beneficial or non-registered participants in the Plan who would prefer to receive a cash dividend rather than reinvest their dividends on and after January 27, 2023 must contact their financial institution or broker for instructions on how to terminate participation in the Plan in advance of December 19, 2022.

A copy of the Plan offering circular describing the terms and conditions applicable to the Plan is available from the Investor Relations section of www.cibc.com or from the agent at www.tsxtrust.com or by e-mail at shareholderinquiries@tmx.com.

The Canadian Press notes:

The announcement comes a day after the federal banking regulator increased the capital reserves banks need to keep on hand by half a percentage point.

RBC announced its own discount for reinvestments at the end of November, saying at the time it expects the move to boost its capital by about $2 billion, while TD and BMO also have discount plans in place.

CIBC says the discount on dividend reinvestments, which is called a stock dividend option for U.S. residents, will apply starting with the Jan. 27 dividend payment and continue until further notice.

The following CM preferreds are outstanding: CM.PR.O, CM.PR.P, CM.PR.Q, CM.PR.S, CM.PR.T and CM.PR.Y.

Update: 2023-6-11: This arrangement is still in effect at time of writing.

CM DRIP: Preferred Dividends into Discounted Common

Tuesday, September 29th, 2009

Better late than never! The Canadian Imperial Bank of Commerce has announced (2009-5-29):

amendments to its Shareholder Investment Plan. Under the Plan, shareholders resident in Canada or the United States may elect to have dividends reinvested in
additional common shares of CIBC.

CIBC has decided to issue shares from treasury at a 3% discount from the Average Market Price (as defined in the Plan) until such time as CIBC elects otherwise. The discount applies to the distribution of common shares under the “Dividend Reinvestment Option” or “Stock Dividend Option” portions of the
Plan. The discount will not apply to shares purchased under the “Share Purchase Option” of the Plan.

Under the Plan, CIBC determines whether the additional common shares are purchased on the secondary market or are newly-issued by CIBC. Previously, shares were purchased on the secondary market with no discount from the Average Market Price.

In addition, under the amended Plan CIBC may designate certain series of CIBC preferred shares as eligible to participate in the Plan. Holders of eligible preferred shares may elect to have dividends on those preferred shares reinvested in common shares of CIBC. CIBC has designated each series of currently authorized preferred shares as eligible to participate in the Plan.

These changes will be effective starting with the dividend payable on July 28, 2009 to common and preferred shareholders of record on June 29, 2009.

Ongoing participants in the Plan will automatically have the discount applied to the reinvestment of their dividends on the July 28, 2009 payment date.

The letter to plan participants states:

The 3% discount will continue until further notice. CIBC reserves the right, in its sole discretion, to amend or cancel the discount or the Plan at any time, to determine whether common shares purchased under the Plan will be purchased on the secondary market or issued from treasury and to determine which series of CIBC preferred shares, if any, are eligible to participate in the Plan.

There does not appear to be a convenient way in which the current status of the DRIP can be checked on-line. Those interested in participating will have to check the Financial News Releases regularly, or contact Investor Relations.

The following CM preferred share issues are outstanding: CM.PR.P, CM.PR.R, CM.PR.A, CM.PR.D, CM.PR.E, CM.PR.G, CM.PR.H, CM.PR.I, CM.PR.J, CM.PR.K, CM.PR.L, CM.PR.M. All are tracked by HIMIPref™. There is also the ridiculous Series 28, which is not listed and therefore has no symbol.

SLF DRIP: Preferred Dividends into Possibly Discounted Common

Saturday, June 20th, 2009

Sun Life Financial has announced:

amendments to its Canadian Dividend Reinvestment and Share Purchase Plan (the “Plan”). The three major Plan changes are:

1. Subject to Toronto Stock Exchange (TSX) approval, Sun Life may issue common shares from treasury at a discount to the average market price to dividend reinvestment participants. At this time and until further notice, the discount will be 2%. To date, common shares issued under the Plan have been purchased through the TSX with no discount to the average market price.

2. Canadian-resident preferred shareholders will be able to participate in the Plan by electing to have dividends paid on their preferred shares reinvested in common shares of Sun Life Financial Inc.

3. Sun Life has also agreed to pay, on behalf of Plan participants, all fees associated with the Plan, other than brokerage commission payable on the sale of common shares held through the Plan.

The changes will be effective starting with the dividends payable on June 30, 2009 to common and preferred shareholders of record on May 27, 2009. The revised Plan is contained in the Amended and Restated Offering Circular which is available at www.sunlife.com or www.cibcmellon.com.

Sun Life may amend or cancel the discount at any time, and Sun Life will continue to determine whether common shares will be purchased under the Plan through the TSX (in which case the discount will not apply) or be newly-issued from treasury. No discount will apply on common shares acquired by participants through optional cash purchases.

The FAQ section of the Amended and Restated Offering Circular states:

The Corporation will announce by press release whether purchases of common shares under the Plan will be made on the open market or through treasury and the applicable discount, if any, included in the Market Price for common shares issued from treasury on a dividend reinvestment.

… while Section E.5 of the

The price that will be paid for Common Shares under the Plan on any Dividend Payment Date (the “Market Price”) will be determined as follows:

For Treasury Purchases, the Market Price will be equal to the weighted average closing trading price of the Common Shares on the Toronto Stock Exchange on the five trading days preceding the Dividend Payment Date, subject to a possible discount of up to 5% that may be applied on Treasury Purchases of Dividend Shares. No discount will apply on Treasury Purchases of Optional Cash Purchase Shares.

For Market Purchases of Dividend Shares and Optional Cash Purchase Shares, the Market Price allocated to each Plan Share, or fraction thereof, acquired by the Plan Agent under the Plan on each Dividend Payment Date will be the volume-weighted average of the applicable best efforts open market purchase price paid per Common Share by the Plan Agent for all Common Shares purchased on that Dividend Payment Date under the Plan.

The Corporation will announce by press release whether purchases of Common Shares under the Plan will be Market Purchases or Treasury Purchases and the applicable discount, if any, for Treasury Purchases of Dividend Shares.

This is, frankly, pretty useless information. I am unable to find one of the fabled press releases and suspect that they will be released only after the end of the registration period, making it impossible to plan.

I do not bother reporting reinvestment plans that do not include a discount to market price and was of two minds as to whether to report this one … but the potential is there – do with it as you see fit.

I recommend an eMail to Sun Life Shareholder Services demanding that, at the very least, the company commit itself one way or the other at time of dividend declaration.

The last mention of Sun Life preferreds in general on PrefBlog reported S&P’s one-notch bond-scale downgrade. These preferreds trade with the symbols SLF.PR.A, SLF.PR.B, SLF.PR.C, SLF.PR.D, SLF.PR.E & SLF.PR.F.

BNS DRIP: Preferred Dividends into Discounted Common

Friday, February 27th, 2009

BNS has announced (a long time ago, but hey! better late than never, right?):

On August 26, 2008, the Bank announced that participants in the Plan will receive a two per cent discount from the Average Market Price (as defined in the Plan) on the purchase of additional common shares with reinvested dividends. The discount will not apply to the purchase of common shares with the optional cash payment or interest reinvestment options of the Plan. The first dividends for which this discount will be effective are the dividends on the Bank’s common and preferred shares declared by the Board of Directors on August 26, 2008 for the quarter ending October 31, 2008. These dividends will be payable on October 29, 2008 to holders of record at the close of business on October 7, 2008. Prior to this announcement, common shares issued under the Plan have been issued with no discount to the Average Market Price (as defined in the Plan).

The two per cent discount for common shares issuable under the dividend reinvestment and stock dividend components of the Plan will continue until further notice.

RY Amends DRIP: Preferred Dividends into Discounted Common Stock

Thursday, February 26th, 2009

Royal Bank has announced:

amendments to its dividend reinvestment plan (the “plan”).

Under the plan, the bank may now offer a discount from the average market price (as defined in the plan) on the reinvestment of dividends in additional common shares issued by the bank from treasury and will provide the preferred shareholders of the bank with the opportunity to participate in the plan by electing to have the dividends paid on their preferred shares reinvested in common shares of the bank.

Under the plan, common and preferred shareholders who reside in Canada and common shareholders in the United States may elect to have dividends paid on their shares reinvested in common shares of the bank.

At this time, the bank has decided to issue shares from treasury at a three per cent discount from the average market price until such time as the bank elects otherwise. Most recently the common shares purchased under the plan have been issued from treasury with no discount to the average market price. These changes will be effective starting with the dividend, payable on May 22, 2009 to common and preferred shareholders of record on April 23, 2009.

Under the old plan (not yet modified on RY’s website), preferred shareholders could not participate.

I can see nothing in the 2008 Annual Report to indicate to what degree shareholders are participating in this. In the great scheme of things, I will assume “not much”, since with no discount there has been little or no reason for institutional shareholders to participate.

A 3% discount though – with preferred share eligibility – could make things more interesting.

Thanks to Assiduous Reader DD for bringing this to my attention!