Dividend Reinvestment Program (DRIP)

The article explains about our Dividend Reinvestment Program and how the program works.

Euro Pacific Trader’s dividend reinvestment program (DRIP) automatically reinvests your qualifying cash dividends into shares of the issuing company. Please note that shares are not purchased via an issuer-sponsored reinvestment plan, but rather in the open market.

  • Only US and Canada-listed common and preferred stocks are eligible for Dividend Reinvestment

  • Once DRIP is enabled account-wide, only dividends from eligible stocks will be reinvested

  • We will charge our standard commission for the purchase

  • Currently, there is no option for you to enable fractional shares. Cash from dividends that is insufficient to purchase a whole share will have the portion of the cash dividend insufficient to purchase a whole share credited to the account in cash.

  • If your account is in a margin deficit and can’t initiate new positions, dividends will not be reinvested, even if you have dividend reinvestment enabled.

Frequently Asked Questions

When does reinvestment occur?

On the (trading day) morning following the receipt of a dividend, we will use the dividend payment (or cash-in-lieu of dividend payment if you have a margin account and your shares are on loan at the time of the dividend payment) to purchase additional shares of that stock.

If you are a shareholder of record as of the close of the dividend record date and enrolled in the dividend reinvestment program prior to the dividend payment date, we will use the dividend payment to purchase additional shares of that stock on the morning of the trading day which follows confirmation of our receipt of the dividend.

If a customer’s credit-check fails on the day dividend was paid, the system continues to check for the next 30 days and may include it in the DRIP file when the credit-check passes. In this case the system may book a delayed DRIP trade (i.e. trade date after pay date). We will also look back 30 days from the date of enrollment and will reinvest any dividends paid to the account within that 30 day time period.

At what price does reinvestment take place?

As shares are purchased in the open market, generally at or near the opening of trading and subject to market conditions, the price cannot determined until the total number of shares for all program participants have been purchased using combined funds.

In the event that the purchase is executed in multiple smaller trades at varying prices, participants will receive the weighted-average price of such shares (i.e., each participant receives the same price). In the event we are unable to reinvest the combined proceeds, each participant will receive shares on a pro rata basis (based on the dividend amount to which each participating client is entitled).

Are the full proceeds of the cash dividend available for reinvestment?

No. Only the proceeds net of commissions and taxes (if the account is subject to withholding) is reinvested. Standard commissions are applied to each purchase.

Can account holders elect which securities are eligible for reinvestment?

No. Dividend reinvestment can be turned on or off for the account in its entirety and cannot be elected for a subset of securities held in the account.

How do I apply for DRIP?

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