MikeyLV

Using DRIPs for Faster Compounding of Dividends

One other little thing. The Canadian goverment withholds 2% of dividends as a non-resident tax. You can, however, claim that tax on your 1040, but NOT if it's held in an IRA/401K/etc. My PGH is in a regular account while PGW is in a 401K. I figured for a 24% dividend, I can afford to loose 2%, especially since the 401K is a Roth.

Using DRIPs for Faster Compounding of Dividends

It depends. I have a DRIP with PGH that I had to get the certificate (and pay my broker's fee for that) and send it in to computershare to enroll. The benefit is I get the 5% discount.

My DRIP with PWE is still with my broker. It gives me dividend re-investment but NOT the 5% discount.

It depends on if you want the disount or not. And honestly, the initial set-up is a PITA requiring verification for Canadian money laundering.