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Helping public companies and their suppliers deliver better and more cost-effective programs since 1994

Dividend reinvestment & direct stock purchase plans

Long-term readers know that we consider these plans to be among the best and most effective tools a public company has at its disposal to strengthen its base of loyal and mostly pro-company long-term shareholders. And, please note, you don’t even have to be a dividend payer for these plans to create value for you, although it helps. We have lots of articles about this on the website - and even more that we’re always delighted to send if asked.

Our best advice, in a nutshell, is this: Be sure you understand your company’s own natural ‘affinity groups’ – and that you are both realistic and very specific about the goals you would like to achieve – before you launch and ‘price’ your plan. Don’t simply copy the latest plan...and don’t be railroaded by a plan provider whose goals are often quite different, and sometimes even incompatible with your own. Measure and monitor plan activities regularly - to see if you are achieving your goals, and getting good value for the money spent. If not, revise and re-market your plan until you DO achieve its full potential to create value for your company. (Look under Stock Transfer Agents to find the leading providers.)

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Currently, we have no recommended suppliers, but please feel free to contact the editors if you would like additional background information and a few names to investigate.