optional cash purchase

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Optional Cash Purchase

A feature of some dividend reinvestment plans allowing participants to use their own cash to buy more shares that the dividends will buy when the dividends are being used themselves to buy more shares. For example, if a dividend will pay for 1,000 more shares, and optional cash purchase will allow the investor to buy, say, another 400 on top of the 1000. Most dividend reinvestment plans limit the number of shares or the amount of cash that may be used.

optional cash purchase

The buying of shares of stock through a dividend reinvestment plan that are in addition to shares purchased with the dividend. Most dividend reinvestment plans place an upper dollar limit on each shareholder's optional cash purchases.
References in periodicals archive ?
The Plan enables Eligible Shareholders to reinvest the cash dividends paid on all or a portion of their Common Shares into additional Common Shares, which will be issued at 97% of the Average Market Price (as defined in the Plan) and provides the opportunity to make optional cash purchases of additional Common Shares on a semi-annual basis, on dividend payment dates.
The company added that on the dividend payment date, the board authorised the issue of common shares in connection with the reinvestment of dividends and optional cash purchases under the Canadian Dividend Reinvestment and Share Purchase Plan, as well as its US Dividend Reinvestment and Share Purchase Plan.
In respect of the company's March 19, 2014 common share dividend payment date, the board has decided that the company will issue common shares in connection with the reinvestment of dividends and optional cash purchases pursuant to the company's Canadian Dividend Reinvestment and Share Purchase Plan and its US Dividend Reinvestment and Share Purchase Plan.
For DRIP participants, the greatest advantage is the ability to make optional cash purchases, which most DRIPs offer.
Over 1,500 companies have these plans, sometimes called optional cash purchases, which are often offered, as a feature of their DRIP program.
The DRSPP remains in effect and allows for the automatic reinvestment of routine dividends and optional cash purchases of stock through the Plan Administrator.
The Plan will allow Eligible Shareholders to reinvest the cash dividends paid on all or a portion of their Common Shares into additional Common Shares, which will be issued at 97% of the Average Market Price (as defined in the Plan) and the opportunity to make optional cash purchases of additional Common Shares on a semi-annual basis, on dividend payment dates.
Most plans also allow you to make optional cash purchases.
Reinvested distributions are subject to a maximum investment of $50,000 per quarter, and optional cash purchases are subject to a minimum investment of $250 and a maximum investment of $10,000 in any calendar month.
Reinstatement of Optional Cash Purchases Under Dividend Reinvestment Plan
Reinvested distributions are subject to a maximum investment of $25,000 per quarter, and optional cash purchases are subject to a minimum investment of $250 and a maximum investment of $5,000 in any calendar month.
The Company also announced that the per share purchase discount for both optional cash purchases and dividend reinvestments was reset to 1%.