Dividents reinvest

[esso]

Will it be possible instead of getting my dividends paid in my Bank account to reinvest them in buying more Royalmail shares at a discounted price if possible? Thanks

[teesdale]

I don't think you can do that. The shares are held by Equiniti on our behalf and theres no reinvesting dividends. I doubt Royal Mail will ever offer a discount as didn't they give us the free shares at £2.70, way below the £3.30 everyone else paid at the beginning. You could reinvest the July dividend of £80 to £100 using online share dealing at a price of about £12 per deal but your only going to be able to buy about 11 shares, when you already have, is it 725 ? Over five years of this though with rising dividends promised you might add another 100 shares. The massive profit is probably passed and will not be repeated, you could buy 83 Lloyds Bank shares instead this year.

[wandle]

Many listed companies offer a Dividend Re-Investment Plan (DRIP), where you can elect to receive your divi in new shares, rather than cash. As yet, however, I have not seen any plans for RM to offer this choice. As for getting the new shares at a discount... you are joking, right?

[spen]

Royal mail didn't give us the shares at a discount of £2.70,,in fact quite the opposite, we got the shares at a mid price a couple of days after floatation, not sure of the exact price but i think it was around the £4.50 mark

[RobertT]

They gave us £2,997.57 worth on 15th October which is basically the yearly limit for a SIP. That related to 613 shares, so £4.89 per share.

[wandle]

Royal mail didn't give us the shares at a discount of £2.70,,in fact quite the opposite, we got the shares at a mid price a couple of days after floatation, not sure of the exact price but i think it was around the £4.50 mark

???
Irrespective of the closing mid-price on October 15th 2013 - the day we were allocated these shares - it does not alter the fact that we were allocated them at a MASSIVE discount.

They were given to us for free. We did not pay any money for them. We 'got them' at a price of £0.00

[spen]

Royal mail didn't give us the shares at a discount of £2.70,,in fact quite the opposite, we got the shares at a mid price a couple of days after floatation, not sure of the exact price but i think it was around the £4.50 mark

???
Irrespective of the closing mid-price on October 15th 2013 - the day we were allocated these shares - it does not alter the fact that we were allocated them at a MASSIVE discount.

They were given to us for free. We did not pay any money for them. We 'got them' at a price of £0.00

Yes i know that(and very gratefully received they were) all i was doing is pointing out the facts to the poster above the facts as he appears to have them wrong