The first time I was able to participate in a stock’s dividend reinvestment plan (DRIP) was in 2nd half of 2018.
The dividend reinvestment plan (DRIP) was offered by a real estate investment trust (REIT) listed in Singapore. Here was how it went:
Stockbroker: ‘Congrats! Mapletree Logistic Trust, a stock that you own is offering a DRIP’.
Ian: ‘Awesome!’
Stockbroker: ‘You may choose to receive your distributions in cash or in units of Mapletree Logistic Trust. Which of the two would you prefer?’
Ian: ‘What is the unit price offered under the DRIP?’
Stockbroker: ‘It is S$ 1.25 per unit.’
Ian: ‘I see. Let me get back to you on it.’
The question was: ‘Should I opt for DRIP or to receive my distributions in cash?’A debate has taken place in my mind. I was excited to receive extra units of the REIT. But, at that time,
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