I have recently decided to enroll in the DRIP of many of my holdings. For those of you that have followed this blog for a while you’ll know that this is contrary to the opinion I had in March of 2007. However, before I’m labeled hypocritical (or possibly fickle) let me plead my case and explain the rational behind enrolling some of my positions.
My portfolio is now at the point where I won’t be adding many more new names as I plan on only holding between 20 and 25 securities. I believe that 20 to 25 holding will provide me with adequate diversification as well as allow me to keep informed on the names I own. As I’ll only be adding between 3 and 8 more positions I will be concentrating on increasing the amount invested in each of my holdings so I’ve decided that DRIPs would be the most effective method to do that as it would become burdensome and not very cost efficient to make 17 to 25 small additional purchases each year. I have chosen to exclude both TD and CSH.UN from the DRIP simply because I already own enough of them. The dividends and distributions from those names will be paid in cash which will be used to eventually add new positions. It’s important to note though that although I’ve enrolled in the DRIP I wouldn’t hesitate to add to existing positions that I felt were undervalued.
Here are the positions that I’ve decided to DRIP: