Canadian Dividend Paying Companies
Canadian Companies Offering DRIP
In this article, I will mention some Canadian Companies that offer DRIP.
In Canada there are many companies that offer dividend reinvestment plans including share purchase plans.
Some companies offer discount on their share purchase plans which helps you buy share less than its market price. Some companies SPP takes a minimum amount of $100 quarterly or monthly. some companies have no limit. You will able to buy more shares directly from a transfer agent, once you are enrolled in share purchase plan of the company.
One of the great benefit of DRIP is that you can buy fractional shares which means you can buy 1.5 shares while broker won’t let you buy odd shares, they only buy even number of shares for you. The power of compounding kicks in due to fractional shares and you are able to grow steady with dividends reinvested.
I have listed some of the companies below that offer Dividend Reinvestment Plans, this list is not exhaustive neither I encourage you to buy only these shares, always do your due diligence before buying any share of the company, make sure you have researched that company well. For Complete list of companies that offer DRIPS go to computershare website > Investor Centre.
Some Dividend Paying Companies:
These are some companies that have consistently increased / paid dividends over a long period of time.
these are some examples, however you can choose any company who offer drips programs after your due diligence.
Bank of Nova Scotia (BNS) – paid dividends every year since 1832.
Bank of Montreal (BMO) – paid dividends every year since 1829.
Enbridge (ENB) – paid dividends for almost 60 years.
TransCanada Corporation (TRP) – paid dividends since at least 2000.
Johnson & Johnson (JNJ:US) – paid increasing dividends for 50 consecutive years.
Fortis (FTS) – paid dividends for over 30 years.
RioCan Real Estate Investment Trust (REI.UN) – paid steady distributions for almost 20 years.
Bell Canada Enterprises (BCE) – paid dividends since 1983.
PepsiCo – paid dividends since 1952.
TransAlta (TA) – has not missed a quarterly dividend payment since 1956.
After you have researched companies well, its time to buy your first share. Getting your first share is cumbersome, but it's worth the time.
How to buy your first share:
To buy your first shares directly from another person
1. go to dripinvesting [Search Google] > First Share > Share Exchange Board.
2. Create your account and enter your profile details.
3. Create New Topic
4. Enter the shares you want after you have carefully researched your desired companies.
5. Once you post, you will start getting emails from sellers .
6. Make sure to ask for reference check on board of the person you are buying share from.
7. Always pay by cheque, unless you trust that person , there has been couple of cases in the past where Email Interac Transfer wasn't traceable . Buyer sent the money and the seller just disappeared .
8. When you pay by cheque seller will wait for the cheque to get cleared, then he will do the paper work to transfer the share in your name. This process can take up to 4 weeks.
After you receive your share certificate, download the company enrollment forms from the computer share website and mail it back to computer share with your share certificate. After couple of days you will receive mail, saying that you have been enrolled into DRIP program of the particular company.