optional cash purchase

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 ?
If you have a DRIP, or a direct optional cash purchase account, which permits the purchase of shares at a discount, you have entered into the wonderful world of investment heaven.
Looking into dividend reinvestment programs
As previously announced, AltaGas has a Premium Dividend, Dividend Reinvestment and Optional Cash Purchase Plan (the "Plan") for eligible shareholders of AltaGas.
Canada : Altagas Ltd. Announces Monthly Dividend
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.
Canada : First Quantum Minerals Declares a Final Dividend of CDN$0.005 Per Share
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.
Manulife Financial declares 19% higher dividend of CAD0.1505 per share for quarter
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.
Manulife Financial declares CDN 0.13 dividend
For DRIP participants, the greatest advantage is the ability to make optional cash purchases, which most DRIPs offer.
Buying stocks through dividend reinvestment plans
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