Investing in a US Dividend Reinvestment Plan

[Jerome]

Hello Jerome,

I would like to invest in CLX with dividend reinvestment. I am in e-trading (postfinance). If I buy through this account, will I still be able to participate in the Direct Stock Purchase Plan (DSPP) or do I have to buy through another channel?

If not, can one usually buy shares or join the DSPP directly through the company's website?

Thanks in advance

Jean-Louis

[Jerome]

Hello Jean-Louis

I don't think you can participate from Postfinance. Apparently it is http://www.computershare.com who acts on behalf of Clorox. You can go to their site, and you have to register by choosing the country where you hold the title as it seems indicated on their site.

An interesting US site on reinvestment plans: http://www.dripdatabase.com/

In Switzerland there is the Novartis stock plan: http://www.novartis.ch/fr/investors/shareholders-corner/dspp.shtml

These stock and reinvestment plans are not really my cup of tea because I prefer to diversify the dividends received in other companies.

[Jerome]

Thank you for your reply, dear Jerome. I am learning a lot from your site!

Dividend reinvestment plans seemed to me to be a good match for a strategy focused on growing dividends. They allow for exponential growth of income in the case of a long-term investment (assuming long-term stability or growth of dividends). In addition, you avoid brokerage fees and sleep "on both ears", well almost.

My intention was to invest 5,000 to 10,000 chf and let it work at Clorox through the DSPP. The rest of my portfolio consists of Swiss stocks in various fields. What do you think?

Thank you and have a good evening.

Jean-Louis

[Jerome]

I think only good things about it! Obviously it's interesting to buy and not worry about it anymore. And then as you say the advantage is the absence of brokerage fees.
What puts me off is the administrative burden that seems to surround these DRIP/DSPP. I'm curious to hear your experience on this subject if you decide to take action.
Personally, and the size of my portfolio helps me, I prefer to wait for the dividends of the companies I have to accumulate, I add a little cash if necessary, and I open a new position in the company that I follow and that interests me. Thus the brokerage fees are not too high in proportion.

[Jerome]

Ok, I understand. I called Computershare to ask if we could participate in the Clorox DSPP from Switzerland. They said that we certainly could and that they would send me the documents. But I only received the financial reports from CLX and no documents to register… So I then wrote an email to Computershare who said they could not respond by email . On their site there is no way to register without information such as Social Security number. In short, I give up. At Novartis it seems simpler to me.

Jean-Louis

[Jerome]

That confirms what I thought... thanks for the info anyway
indeed Novartis seems a better choice for this kind of plans

[copycat10]

Thanks for the Novartis tip!

 

There is also the same dividend reinvestment formula for BION here: http://www.six-securities-services.com/dss/fr/index/shs-shareholder-services/shs-client-documents/bb-aktienplan.htm

Everything in German though.

[Author]

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