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What is the Dividend Reinvestment Plan (DRIP) program?
The Dividend Reinvestment Plan offers eligible shareholders the chance to reinvest dividends paid on their shares towards purchases of new shares at a discounted price. TD Direct Investing will automatically reinvest the cash dividends portion by each client for specific securities within their account that they are enrolled in on the DRIP program.
The benefits to participating in such a program are:
- Dollar cost averaging, which over time can enhance returns
- No fee or commission to invest in more shares of a company, reducing costs
- Compound growth. Dividends reinvested compound over time
- Allows for participation in a company's growth on a regular basis
- No sales charge, trailer fees, and management fees
- Can buy less than a board lot without paying higher commission charges
- Can be used in conjunction with RESPs and informal "In Trust" accounts
Please note that the answers to the questions are for information purposes only for the products discussed. Individual circumstances may vary. In case of discrepancy, the documentation prevails.