Virtual Brokers is introducing Canada's first Self-Directed Dividend Purchase Plan (SDPP), a new commission-free way for you to invest dividends from most dividend-paying stocks or Exchange- Traded Funds (ETF) that you own into eligible stocks or ETFs. With Self-Directed DPP, you'll be able to use cash from dividends to buy most securities at no commission in a way that fits your investment strategy.
Self-Directed Dividend Purchase Plan (SDPP)
Self-Directed DPP is different than a traditional Dividend Reinvestment Program (DRIP), which requires you to reinvest dividends back into the securities that generated them. With Self- Directed DPP, dividends accumulate into a pool of funds. Those funds are then used to automatically purchase most stocks or ETFs of your choosing.
Dividend Purchase Plan (DPP)
The Dividend Purchase Plan (DPP) and Self-Directed Dividend Purchase Plan (SDPP) enrollment has been made more efficient and user friendly, as it will allow you to control the setup and select your preferred plan with ease. You are now able to select the stocks and ETFs you wish to invest into by making the request through your client login. Your preferred plan purchases will be made mid-month, once a month. Please click here to view the differences between a DPP and SDPP.
Virtual Brokers’ Dividend Purchase Plan (DPP) shares are bought automatically on the market using the dividend proceeds (as opposed to obtaining shares through the transfer agent). The cost is $1.00 per month for each account with stocks enrolled for DPP.
How to Enroll
To enroll your account(s) into a plan, please login to your Virtual Brokers online account. Please go to “Account Services”, select either the “Dividend Purchase Program” option or the “Self-Directed Dividend Purchase Program” option, depending on your preference. Please click here to see instructions on how to access the DPP and SDPP service.
The Dividend Purchase Plan and Self-Directed Dividend Purchase Plan exceed aspects where dividend reinvestment plans are limited.
To view our Terms and Conditions, please click here.