Not many brokers offer the 5% discount in reinvesting. Have used Etrade for years for all investments including DNP, 10 years ago found out about the 5% discount reinvestment.
Since Etrade did not offer it, I move DNP to Bank of NY Mellon, (it is easy to do) Bingo, making almost $180 extra a month in appreciating taking advantage of this program. If you are in DNP long term and not taking advantage, you need to change that.
I have recently found out that Wells Fargo offers the 5% reinvest discount too. On top of that if you have 25K in Wells Fargo, you get 100 free trades a year. It made sense for me, not I have IRA and brokerage at Wells
which has also always had my checking account, sorta consolidating. Between the free trades and 5% dividend reinvest it saves and or makes me thousand that I would not have had otherwise... I wish DUC had the same 5% offering..
I have held dnp for many years, in fact, I inherited my father's account which he started sometime in the in the '80s, i believe. It has increase about 10x since then.
good point about the reinvestment program. My broker does not give me the 5% discount...wonder what happens to it. ha
Take a look at what I wrote, I said the DUC, (DNP sister company)is at 12 NAV, well at 11.96 today.
I know the DNP is at 7.47 as of today...
My preference as an investment between the two DUC vs DNP is DNP even though DUC is well below NAV value, and DNP is at a premium. I have a both of them...
Reason: 1. Wells Fargo Brokerage offers 5% discount with DNP on reinvestment-what this means is on this Monday, I will be buying a bunch more DNP at 9.14 with my dividend check. Great deal for those who what to build a portfolio of dividend paying funds.
2. DNP volume, easy to get in and out
If you look at two of my DNP calls this week, I said it would go to about 9.40 two days prior and it hit 9.40, said it would hit about 9.70 today, it opened exactly at 9.70, I like that, not always right, but more right then wrong.
DNP will pay dividend this Monday, (should hit $9.80+ Monday), DUC pays last day of the month. Love getting the two dividend checks now reinvesting, some day will cash them to pay for fishing boat. : )
By the way, they announced next three months of dividends, they have never missed paying out dividends, I like that...
Yep, added to stock pile. Though we missed the dividend, the price is right and I think it will be above $10 next 10 days leading up to the distribution on Aug 11th.
Been in this stock for a long long time, though there is an article saying it is not worth the price, I have found very few investments that have been as consistent with monthly dividend checks, and they appear to be making enough money that they are now not returning Capital..
not so simple, bubby92614:
"they appear to be making enough money that they are now not returning Capital.. "
They are reporting "net realized LT cap gains" as the other income source for paying the distribution (nearly 50% ytd). What do you think that implies? Hint: it's not the same as "net investment income".