Monday, March 27, 2006
Manulife Financial - Scourge of the DRIPping world?
Widely anticipated, the company has let the DRIPping community down by creating a plan that very fee laden. Although many U.S. companies have been putting fees on their DRIPs for years, Canadians have been relatively lucky by not having many plans that have additional fees for buying shares. Most though have fees for selling shares through the plans, with most averaging about $0.15 per share.
Manulife has created a program that has been described as the most fee instenisve DRIP on both sides of the border! Here's the particulars:
Optional Cash Payment Setup Fees: $15
Minimum Investment: $100
Reinvestmnet Charge: 5% of dividend payment
Sale: $20 per sale plus $0.06 per share
The plan particulars can be found here: Manulife Financial DRIP
Manulife doesn't seem likely they will change this plan which is a shame as it would have received great support from everyone I spoke to. Another Canadian insurance company, Sun Life, is now considering a DRIP. Let's hope that they do not follow Manulife's lead in demonstrating what a DRIP should be.
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