Introduction:Drip plans are a fantastic way to re-invest dividends without large brokerage commissions eating away at your profits. Some companies even offer a discount if you purchase your shares through the Computershare DSPP or DRIP plan. Here are the best ones:
Aqua America (WTR) is a company that has a solid history of making dividend payments. It has paid out quarterly dividends for 65 years, according to its 2010 year end filing. When purchased through the DRIP plan at Computershare, investors receive free dividend re-investment and also receive a 5% discount on shares purchased with re-invested income.
Redwood Trust (RWT) is a REIT that invests in commercial and residential mortgage notes. The company offers a discount on re-invested dividends that varies between 0-5% The discount is determined by the company before each quarterly dividend payment.
Telephone and Data Systems (TDS) is a telecommunications provider that operates in the wireless and traditional wireline space. The company is the majority shareholder of US Cellular. It's DRIP plan offers a discount of 5% on reinvested dividends.
Alliance Bernstein offers a managed mutual fund that was known until recently as "The Spain Fund," It has since been renamed as the Ibero-America Fund. A secondary offering of shares (SNF) are offered on stock exchanges. If the shares trade at the nav or above the nav when the quarterly distribution is announced then reinvestments made in the Computershare DRIP plan will be discounted by 5%.
The China Fund Inc. (CHN) is a mutual fund that also trades shares on the NYSE. Investors in the Computershare DRIP plan receive a 5% discount on dividend re-investment when the price of the stock matches the mutual fun NAV or is higher.
Getting paid a discount to buy great dividend stocks is pretty awesome! This is a great way to juice your returns.
select one here...