i bought it at RM8 ish 6 7 years ago. so far only div gain, no capital gain. div reinvestment plan is halting the price to go up since most of the ppl get and dump it back into the market. good for big player, bad for small players as our transaction cost are higher zzz....

Is it worth investing in DRP as my stock holding will end up with odd units as well as having to pay for stamp duty?

Appreciate some opinions

Curious too

For me, I would rather take cash dividend than DRP

At least can use the money to buy some penny stock or any others expenses

Try not to end up with odd lot.
Take the money, top up to buy 1 full lot.

Take money is always my choice

Why not end up with odd lot ah?

It is difficult to sell the odd lot shares. If I am not mistaken, odd lot shares are cheaper than normal lot shares.

Ah, makes much more sense. Thanks.

So retail don't usually opt for the drp then

bcos the volume that u holding not many.. for instance, if u carry 1 lot, then your DRP probably only offer 5 unit.
So u ended 105 unit in total. so this is odd lot. only can be sold by calling remiser. i tried before.

sell via remiser and same price of the market price.

depending on individual..
for me, nope

who said odd lot cheaper price?
it's still the same price quoted on bursa...

Can't we reduce the number of units applied under DRP to achieve full lot?

Assuming that we have 1178 units, we can just apply for 22 units so that it makes 1300 units (13 lots). This is assuming that the number of units available under DRP is more than 22 units.

Might take awhile if number of starting units is small but once accumulated over time (via DRP and additional purchases), the number of units under DRP will increase and makes it easier to adjust to hit full lot. Need to plan well ahead though since DRP is twice a year after dividend declaration.

That's what I plan to do if I want to fully dispose off all units.

This post has been edited by Okina: May 29 2017, 06:44 PM

electible portion what. you can elect the portion to make up your odd lot into board lot. then no problem in selling it lor.

then the remaining receive cash will do lor.

Then the whole debate whether to opt in on DRP or not due to odd lots is moot.

I'd understand if it is one lot = 1000 units back in the old days but now it is 100 units, so not much of an issue.

The only factor to consider is which is cheaper; DRP + revenue stamp + postage cost or buy from market (e.g. cheaper today or expect price to go down in the future).

why can't the price goes up instead?

in my opinion, this is a share that you wanna invest for the longest time.

whenever you are presented with a chance to average down your costs.

don't you wanna capitalise it?

Who wouldn't want to average down as much as possible?

If DRP is MYR 8.35 and the market price is MYR 8.00, I am better off buying from market using the cash dividends (well, more like buy using own money first and then get "reimbursed" when the dividend comes in.

Opposite is true if market price is MYR 9+. DRP is better than buying.

This is on the assumption that there is no spare cash to dump into stocks at that point of time and that the dividend will be banked in before other expense obligations are due.

don't talk about IF.

is the current price lower than the reinvestment price? Exact scenario, what's the point of talking about what if scenarios when it isn't the case?