Dividend Reinvestment Plans (“DRIPs”) is a great tool for investors who want long-term investments with possible discounted prices and for issuers in that they offer low-cost access to capital.

Continental offers DRIP services for different types of plans; i.e., Company sponsored, Bank sponsored or DRIPs associated with Direct Stock Purchase Plans (“DSPPs”) and Employee Stock Purchase Plans (“ESPPs”).

Continental uses an independent, registered broker to facilitate all buys and sells, but will also use a broker that is preferred by the issuer. As there may be buy/sell restrictions during blackout periods, Continental has the mechanics to put these rules in place as appropriate.

An ESPP allows participating employees of an issuer to buy shares also at a possible discount. Employees contribute to the Plan through payroll deductions. The funds are then used to purchase shares on behalf of the employees and held electronically, including fractional shares. DRIPs and DSPPs often have min/max investment requirements, broker fees and tax reporting requirements. Our Dividend Reinvestment Department expertly manages all these features for many different companies. Investor enrollment is fairly easy and includes enrollment and investment options through our online portal, ContinentaLink. If you are considering adopting a plan, or want more information on how DRIPs work, please contact your Account Manager.