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.
As previously announced, AltaGas has a Premium Dividend, Dividend Reinvestment and Optional Cash Purchase Plan (the "Plan") for eligible shareholders of AltaGas.
The Company also announced today the reinstatement of the optional cash purchase component of its Dividend Reinvestment and Common Stock Purchase Plan, effective immediately for investments beginning May 15, 2009.
Omega Suspends Optional Cash Purchase Component of Dividend Reinvestment and Common Stock Purchase Plan
The optional cash purchase portion of the Plan also has been reinstated for all investment periods commencing after October 1, 2006, with a discount of 1%.
On October 16, 2007, the Company announced the reinstatement of the optional cash purchase component of the Company's Dividend Reinvestment and Common Stock Purchase Plan (the "Plan").
The Company's Board of Directors also announced the reinstatement of the optional cash purchase component of the Company's Dividend Reinvestment and Common Stock Purchase Plan (the "Plan").
The Fund's optional cash purchase plan also has been terminated effective today.
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.