Can I reinvest dividends directly into the Funds and is there any benefit over purchasing shares in the open market?
The answer to both questions is yes. Each Fund’s Dividend Reinvestment Plan (the “DRIP”) provides a means of acquiring additional shares of the Fund without paying the full market premium, if any. When the market price is above NAV, new shares will be issued to participants in the Plan at the higher of NAV or 95% of the then current market price. Participating shareholders can therefore receive a discount on their reinvested shares of up to 5% of the market price. If the market price of the shares is below the NAV, the Plan purchases shares in the open market. The brokerage commission charged for acquiring these shares is competitive with most “discount” brokers. Shareholders should be aware that not all broker-dealers participate in the Fund’s dividend reinvestment plan. If your shares are held in a brokerage account, ask your broker if his/her firm is set up to participate. If you hold your shares in certificate form, or if you would just like more information, call PFPC Inc., at 1-8
Related Questions
- I live in Indonesia and hold an account in India for purchasing mutual funds/equities from the secondary market. Am I liable to pay any Capital Gains tax when I sell/redeem these shares/funds?
- Can I reinvest dividends directly into the Funds and is there any benefit over purchasing shares in the open market?
- Can I reinvest dividends directly into the Fund and is there any benefit over purchasing shares in the open market?
