What is a DRIP?

Dividend Reinvestment Plans (DRIPs) allow shareholders to use their cash dividends to buy shares easily and cost effectively. DRIPs are offered by an increasing number of leading UK companies.

What are the benefits?

DRIPs benefit both the company and the shareholders.

Company benefits

• Shareholder service provided at little or no cost to the company.
• Minimal secretariat resource required to launch and run.
• Avoids equity dilution associated with Scrip dividends.
• Opportunity to increase the size of the average shareholding.

Shareholder benefits

• Opportunity to add to their existing holding at low cost.
• Easy to understand and easy to join.
• A fully approved and regulated service provided by a major bank.

What are the features?

A DRIP lets participating shareholders use their dividends to buy shares in the market:

• Shareholders receive full details about the DRIP and instructions to return an application form to Equiniti.
• Participants' dividend money is paid into an Equiniti bank account, who instruct a broker to buy shares.
• Shareholders are sent a share purchase advice, share certificate and tax voucher.
• Shareholders pay a dealing/administration charge and stamp duty.
• Administration fees payable by the company are offset by the charges to participants.

Your next step

For more information on these services, either speak to your Relationship Manager or contact our Business Development Team.