Dividend Reinvestment

Dividend Reinvestment

Dividend Reinvestment

Dividend Reinvestment Plans (DRIPs) enable shareholders to reinvest their cash dividends into additional shares directly and are a perfect way to boost the value of a holding. DRIPs can sometimes include a Stock Purchase Plan (SPP) element whereby shareholders and employees can buy additional shares by adding extra cash.

Business Benefits of a DRIP and SPP

DRIPs and stock purchase plans enable your shareholders to buy shares over a more extended period easily and in a straightforward way. Giving access to DRIPs and SPPs has been shown to increase employees' commitment and loyalty to your business, which is essential in a world where close allegiances to one company are being eroded as staff change jobs more frequently than in previous generations.

Employee and Shareholder Benefits of DRIP and SPP

As purchases are made in DRIPs and SPPs over a longer time frame than a single acquisition, employees and shareholders benefit from cost price averaging their investments, which means they are never buying the shares at their highest or lowest points. They also have the benefit of much smaller transaction costs. These shares can also be bought with voluntary cash contributions, which further increase the size of their holding. Recipients also receive regular statements reflecting their holding, and the majority of these plans permit the shareholder to dispose of some or all of the shares held.

Castle Brick Internationals DRIP and SPP

Castle Brick International offers our own DRIP and SPP. This is an excellent means of offering your shareholders and employees additional shares in your company in an easy, straightforward, and low-cost way.

The plan allows for:

  • The initial share purchase in the plan
  • Reinvesting the dividend entirely or partially
  • Buy extra shares with voluntary cash contributions
  • Regularly updated statements
  • Selling shares periodically

We can help you focus on your business

If you’re being weighed down by the burden of complying with ever-changing regulations, Castle Brick International governance counseling can lighten the load and enable your board to focus on your business

Contact Us