Canadian Dividend Reinvestment Plans (DRIPs): March 2006
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Thursday, March 30, 2006

Mergent's Dividend Achievers - An excellent resource for choosing your DRIPs

There's an excellent resource out there for choosing dividend-paying companies. It's called the Mergent's Dividend Achievers list and there's a list especially for Canadians.

Every year Mergent's compiles a list of companies that have increased their dividends for five consecutive years. This would seem an easy task for most companies but there are only 35 firms on this year's list! Most of the banks are there but massive dividend payers like TransCanada Corp., BCE and TransAlta are all missing.

Some of the new companies added this year are: Atco Ltd., Canadian Western Bank, H & R REIT, Manulife Financial and Sun Life Financial.

Using this criterion for choosing companies that pay an ever increasing dividend is especially important for those investors who are looking to replace their salaries with dividend payments as they get older. A rising dividend will help these people keep pace with inflation.

However, don't disregard the importance of a growing dividend for those in their share accumulation period (like moi) as the growing dividend means it will allow me to purchase more shares on a quarterly basis through the DRIP.

So, if you are looking for an additional way of choosing a new DRIP, check out the Mergent's list here: Mergent's Dividend Achievers

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Monday, March 27, 2006

Manulife Financial - Scourge of the DRIPping world?

Although this post is a little late, for those of you who didn't know Manulife Financial has instituted a new dividend reinvestment plan.

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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Friday, March 24, 2006

Looking to play the energy market?

For those of you who are looking to play the energy market, I came across an excellent article from the Globe and Mail that charts the progress of Energy Stocks vs. Energy Trusts.

The article states that "Over the past three years, the average total return from the 15 largest oil stocks beat the average from the 15 largest trusts 24.7 per cent to 22.4 per cent. In the past 12 months, trusts beat stocks 34.8 per cent to 33.6 per cent (total returns include share or unit price gains plus dividends or distributions)."

Although the piece dates from May 2005, I believe there is still some worthwhile nuggets of information in here for those looking to find a true bargain.

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Wednesday, March 22, 2006

Monster Update!!

I thought it about time that I made another update of the site. As you can see the table below has been updated to reflect the many changes DRIPs have seen over the past eight months.

I have added the following news plans:
1. ActivEnergy Income Fund
2. Brascan SoundVest Diversified Income Fund
3. Brompton Equal Weight Income Fund
4. Brompton Equal Weight Oil & Gas Income Fund
5. Brompton MVP Income Fund
6. Brompton Stable Income Fund
7. Business Trust Equal Weight Income Fund
8. Canadian Fundamental 100 Income Fund
9. Canetic Resources Trust
10. CML Healthcare Income Fund
11. Core IncomePlus Fund
12. Daylight Energy Trust
13. Faircourt Income Split Trust
14. Faircourt Split Five Trust
15. Flaherty & Crumrine Investment Grade Fixed Income Fund
16. Flaherty & Crumrine Investment Grade Preferred Income Fund
17. IndexPlus Income Fund
18. IndexPlus 2 Income Fund
19. ING Direct Canada
20. Ketch Resources Trust
21. Keyera Facilities Income Fund
22. Manulife Financial
23. Matrix Income Fund
24. Maxin Income Fund
25. Mint Income Fund
26. Mortgage-Backed Securities Trust
27. Pathfinder Income Fund
28. Penn West Energy Trust
29. Sequoia Oil & Gas Trust
30. Thunder Energy Trust
31. True Energy Trust
32. Vault Energy Trust
33. Vector Energy Fund
34. Yield Plus Income Fund

I have deleted the following plans because the first two have suspended their DRIPs, Viking has merged with Harvest Energy, and the forth has been replaced by Mint Income Fund:
1. Dofasco
2. Terasen
3. Viking Energy Royalty Trust
4. Middlefield High Income Trust

I have also updated the following plans:
1. Harvest Energy - $5,000 per remittance and up to $100,000 aggregate amount of remittances by a unitholder in any calendar month
2. Canetic Resources Trust replaces Acclaim Energy Trust, APF Energy Trust and StarPoint Energy Trust through a succession of mergers.
3. IPC US Income Commercial REIT is now IPC US REIT; added 3% discount
4. Peyto - now $1,000 MIN; no Max
5. Pulse Data Incorporated - MIN reduced from $2,000 to $200

That's it for now. As always, if you see any discrepancies then please post a comment. Don't be discouraged by the fact you now have to enter Word Verfication. I am using this step to cut down the amount of spam the site receives.

Happing DRIPping,

List of Canadian DRIPs & SPPs



DRIP? SPP? Discount? Minimum Maximum
Aberdeen Asia-Pacific Income Investment Company Limited FAP Y Y N $100/Month $20,000/Year
ACTIVEnergy Income Fund AEU.UN Y Y 5% $100 -
AGF Management Limited AGF.B Y N N N/A N/A
Agnico Eagle Mines Limited AEM Y Y 5% US$100 US$20,000/Year
Allied Properties REIT AP.UN Y N 5% N/A N/A
AltaGas Ltd. ALA Y Y 5% $1,000 $100,000/Month
ARC Resources Ltd. ARX Y Y 5% $500 $3,000/Month
Artis REIT AX.UN Y Y 4% $1,000 $10,000
Bank of Montreal BMO Y Y N - $40,000/Year
Bank of Montreal Exchange-Traded Funds (ETFs) - Y N N N/A N/A
Bank of Nova Scotia BNS Y Y 2% $100/Month $20,000/Year
Baytex Energy Corp. BTE Y N 5% N/A N/A
BCE Inc. BCE Y Y N - $20,000/Year
Bell Aliant Inc. BA Y Y N - $3,400/Month
Brompton Oil & Gas Income Fund OGF.UN Y Y 5% - -
Brompton VIP Income Fund VIP.UN Y Y 5% - $20,000/Year
Brookfield Asset Management Inc. BAM.A Y N N N/A N/A
Brookfield Office Properties Canada BOX.UN Y N N N/A N/A
Brookfield Properties Corp. BPO Y N N N/A N/A
Calloway REIT CWT.UN Y N 3% N/A N/A
Canadian Apartment Properties REIT CAR.UN Y N 5% N/A N/A
Canadian General Investments, Limited CGI Y Y N $100/Quarter $5,000/Quarter
Canadian REIT REF.UN Y Y 4% $250/Month $25,000/Year
Canadian Tire Corporation CTC Y N N N/A N/A
Canadian Western Bank CWB Y N N N/A N/A
Canexus Corporation CUS Y N 5% N/A N/A
Capstone Infrastructure Corporation CSE Y N N N/A N/A
Caribbean Utilities Company, Ltd. CUP.U Y N N N/A N/A
Cenovus Energy Inc. CVE Y N N N/A N/A
Cervus Equipment Corporation CVL Y N 5% N/A N/A
Chartwell Seniors Housing REIT CSH.UN Y N 3% N/A N/A
Churchill Corporation CUQ Y N 5% N/A N/A
CIBC CM Y Y 2% $100 $50,000/Year
Citadel Income Fund CTF.UN Y N N N/A N/A
Claymore Exchange-Traded Funds (ETFs) - Y N N N/A N/A
ClubLink Enterprises Limited CLK Y N 5% N/A N/A
Cominar REIT CUF.UN Y N 5% N/A N/A
COMPASS Income Fund CMZ.UN Y Y 5% $100 -
Corus Entertainment CJR.B Y N N N/A N/A
Crescent Point Energy Corp. CPG Y N 5% N/A N/A
Daylight Energy Ltd. DAY Y Y 5% $1,000 $100,000/Month
DDJ High Yield Fund HYB.UN Y N 5% N/A N/A
Dundee REIT D.UN Y Y 4% $1,000 $250,000/Year
Dundee International REIT DI.UN Y Y 4% $1,000 $250,000/Year
Eagle Energy Trust EGL.UN Y N 5% N/A N/A
Emera Inc. EMA Y Y 5% $25/Quarter $5,000/Quarter
Enbridge Inc. ENB Y Y 2% - $5,000/Quarter
Enbridge Income Fund Holdings Inc. ENF Y Y N $100/Month $1,000/Month
EnCana Corporation ECA Y N N N/A N/A
Energy Income Fund ENI.UN Y N N N/A N/A
Enerplus Corporation ERF Y Y N N/A N/A
EnerVest Diversified Income Trust EIT.UN Y Y N - $1,000/Month
EnerVest Energy & Oil Sands Total Return Trust EOS.UN Y Y N $100 $1,000/Month
Equitable Group Inc. ETC Y N N N/A N/A
Exchange Income Corporation EIF Y Y 3% $100 $10,000/Month
Extendicare REIT EXE.UN Y N 3% N/A N/A
Firm Capital Mortgage Investment FC Y Y N $250/Month $12,000/Year
Flaherty & Crumrine Investment Grade Fixed Income Fund FFI.UN Y Y 5% - -
Fortis Inc. FTS Y Y 2% $100/Quarter $30,000/Year
Freehold Royalties Ltd. FRU Y N N N/A N/A
Gibson Energy Inc. GEI Y N 3% N/A N/A
GMIncome & Growth Fund GMF.UN Y Y 5% $100 -
H&R REIT HR.UN Y Y 3% $250/Month $13,500/Year
Homburg Canada REIT HCR.UN Y N 3% N/A N/A
HOMEQ Corporation HEQ Y N 4% N/A N/A
Horizon Alpha Pro ETFs - Y N N N/A N/A
Husky Energy HSE Y N N N/A N/A
Imperial Oil Limited IMO Y Y N $50/Quarter $5,000/Quarter
Income Financial Trust INC.UN Y N N N/A N/A
INDEXPLUS Dividend Fund IDF.UN Y Y 5% $100 -
INDEXPLUS Income Fund IDX.UN Y Y 5% $100 -
Intact Financial Corporation IFC Y N N N/A N/A
Inter Pipeline Fund IPL.UN Y N 5% N/A N/A
InterRent REIT IIP.UN Y Y 4% $250 -
Just Energy Group JE Y Y 2% $500/Month $100,000/Year
Keyera Corp. KEY Y N 3% N/A N/A
Killam Properties Inc. KMP Y N 3% N/A N/A
Lanesborough REIT LRT.UN Y Y 4% $1,000 $10,000/Month
Liquor Stores N.A. Ltd. LIQ Y N 3% N/A N/A
Manitoba Telecom Services Inc. MBT Y Y 3% $100 $20,000/Year
Manulife Financial Corporation MFC Y Y 3% $100/Quarterly $250,000/Year
MCAN Mortgage Corporation MKP Y N N N/A N/A
Medical Facilities Corporation DR Y N N N/A N/A
MINT Income Fund MID.UN Y Y N $100 -
Morguard Corporation MRC Y N N N/A N/A
Morguard REIT MRT.UN Y N N N/A N/A
MOSAID Technologies MSD Y N N N/A N/A
Mulvihill Premier Canadian Income Fund PCU.UN Y N 5% N/A N/A
Mulvihill Top 10 Canadian Financial Trust TCT.UN Y N 5% N/A N/A
NAL Energy Corp. NAE Y Y 5% $1,000 $5,000/Month
National Bank of Canada NA Y Y N $500 $5,000/Quarter
Nexen Inc. NXY Y N 5% N/A N/A
Northland Power Inc. NPI Y N N N/A N/A
NorthWest Healthcare Properties REIT NWH.UN Y N 3% N/A N/A
Olympia Financial Group Inc. OLY-X Y Y N - -
Onex Corporation OCX Y N N N/A N/A
Parkland Fuel Corporation PKI Y N N N/A N/A
Partners REIT PAR.UN Y Y 3% $1,000 $12,000/Year
PATHFINDER Convertible Debenture Fund PCD.UN Y Y 5% $100 -
Pengrowth Energy Corporation PGF Y Y 5% - $1,000/Month
Penn West Exploration PWT Y Y 5% $500 $5,000
Phoenix Technology Services PHX Y N 5% N/A N/A
Plazacorp Retail Properties Limited PLZ-X Y N 3% N/A N/A
Potash Corporation POT Y N N N/A N/A
Precious Metals and Mining Trust MMP.UN Y N N N/A N/A
Primaris Retail REIT PMZ.UN Y N 3% N/A N/A
Progress Energy Resources Corp. PRQ Y N 5% N/A N/A
Provident Energy Ltd. PVE Y Y 5% $1,000 $100,000/Month
REIT INDEXPLUS Income Fund IDR.UN Y Y 5% $100 -
Retrocom Mid-Market REIT RMM.UN Y N 4% N/A N/A
RioCan REIT REI.UN Y Y 3.1% $250/Month $25,000/Year
Rogers Communications Inc. RCI.B Y N N N/A N/A
Royal Bank of Canada RY Y N N N/A N/A
Senior Gold Producers Income Corp GPC Y Y 5% - $20,000/Year
Shaw Communications Inc. SJR.B Y N N N/A N/A
Skylon Growth & Income Trust SKG.UN Y N N N/A N/A
Student Transportation of America Ltd. STB Y N 3% N/A N/A
Suncor Energy Inc. SU Y Y N $100 $5,000/Quarter
Sun Life Financial SLF Y Y 2% $100/Quarter $50,000/Year
Superior Plus Corp. SPB Y Y 5% $1,000/Month $20,000/Year
Telus Corporation T Y Y N $100/Month $20,000/Year
Thomson Reuters Corporation TRI Y N N N/A N/A
Timbercreek Mortgage Investment Corporation TMC Y N 5% N/A N/A
Tim Hortons THI Y Y N $25 $250,000/Year
Toronto-Dominion Bank TD Y N 1% N/A N/A
Torstar Corporation TS.B Y N N N/A N/A
TransAlta Corporation TA Y Y 3% - $5,000/Quarter
TransCanada Corporation TRP Y Y N $50/Quarter $10,000/Quarter
TransGlobe REIT TGA.UN Y N 3% N/A N/A
Triax Diversified High-Yield Trust TRH.UN Y N N N/A N/A
Troy Resources NL TRY Y N 5% N/A N/A
Valener Inc. VNR Y N 5% N/A N/A
Veresen Inc. VSN Y N 5% N/A N/A
Vermilion Energy Trust VET Y N 5% N/A N/A
Whiterock REIT WRK.UN Y Y 4% $250 -
Yellow Media Inc. YLO Y N 5% N/A N/A
YIELDPLUS Income Fund YP.UN Y Y 5% $100 -
Zargon Oil & Gas Ltd. ZAR Y N 5% N/A N/A

LEGEND: Company - name of company offering a Dividend Reinvestment Plan (DRIP); Company Hyperlink - click the link to view the plan details;
Symbol - company's stock ticker symbol; Symbol Hyperlink - click the link to view the current Globe Investor stock quote; DRIP - does the company have a DRIP?;
SPP - does the company offer a Share Purchase Plan (SPP) or Optional Cash Purchase Plan (OCP) which allows the user to purchase additional shares/units through the company's transfer agent?;
Discount - does the company offer a discount on the price of additional shares/units purchased through an SPP/OCP or through dividend reinvestment?;
Minimum - the minimum amount per SPP/OCP; Maximum - the maximum amount per SPP/OCP; Highlighted Row - company has an SPP/OCP