Author Topic: DRIP investing outside of the US  (Read 1950 times)

Okonomen

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DRIP investing outside of the US
« on: September 01, 2019, 01:21:25 AM »
Hope this is the right forum as it relates to investment strategy nonetheless

Iím from Denmark and own several US companies in my retirement/pension account - for example Phillips 66. I would like to do DRIP (dividend reinvestment plan) with these but do anyone know how? My retirement account is through Nordnet Bank


Cigarbutt

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Re: DRIP investing outside of the US
« Reply #1 on: September 01, 2019, 07:02:15 AM »
-The simple answer is to communicate with your broker and: 1-see if they have a indirect DRIP program (which usually implies buying shares in the open market using a weighted average price over the last few trading days) and 2-if they do, see if your company is on the list. Then just activate the DRIP option.
-You may want to consider a direct DRIP option. Many companies offer this through an outsourced program to a transfer agent. For example, Phillips 66 has outsourced to Computershare and does not provide the occasional option of buying shares with a discount. It allows international investors though. I think direct DRIP programs do not allow dividend reinvestment in tax-deferred accounts. You can look at the details and even the prospectus:
https://www-us.computershare.com/Investor/#DirectStock/Index
-This has been discussed elsewhere on this Board but you may want to consider that DRIP programs are not free. Outside of explicit fees, because of the relative opaqueness of the transaction mechanism and because of the punctual increased demand on specific stocks that could occur around reinvestment periods, your programmed reinvestment schedule may mean paying more than if you build an intrinsic automatic formula yourself. If dollar-cost averaging is your thing, every 3 months, you could add up all the dividends received and buy the stock in your portfolio that has least 'performed' during the last quarter. In certain instances, it's a good idea to let others decide for you and automatic investments give you peace of mind and come with automatic discipline..

Hielko

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Re: DRIP investing outside of the US
« Reply #2 on: September 30, 2019, 10:43:09 AM »
Hope this is the right forum as it relates to investment strategy nonetheless

Iím from Denmark and own several US companies in my retirement/pension account - for example Phillips 66. I would like to do DRIP (dividend reinvestment plan) with these but do anyone know how? My retirement account is through Nordnet Bank
I think the only option is to switch to a US based/focussed broker. I'm unaware of any European broker that supports this.