Oct. 25 at 10:27 AM
so, what good are DRIP shares, anyway?
well, for me and my (our) RothIRA accounts held @ Fidelity (a *real* brokerage) it's simple, really. DRIP shares are acquired at a discount, either @ NAV like for
$CLM &
$CRF or a 5% discount to the share price like for
$OXLC so they just cost less than if I were to just buy them. So,
$100 in dividends becomes instantly worth more and can be sold at a premium. Of course, CLM & CRF currently trade at a premium to NAV so getting shares at NAV is really quite advantageous at this point. OXLC, OTOH, is currently trading at a DISCOUNT to it's NAV and shares are acquired at the lesser of 5% discount to NAV *or* share price. So, you could certainly buy shares at a discount to NAV, but the DRIP acquires them at a discount to that already discounted share price. All of these shares are shown to be acquired at a cost of
$0.00, so saying they are FREE shares isn't a lie. I keep track and these are the results.
screenshots from 1 acct
TYFYATTM
Yeah, I'm a bit
