With the dividend purchase plan (DPP), investors automatically use cash
dividends to purchase additional shares of a security. The Questrade
DPP is free; there are no set-up or ongoing administrative fees associated
with the plan. Clients must have a current account and a position in
the security to be enrolled. We cannot accept DPP authorization forms
prior to opening an account and purchasing securities.
Account creation, maintenance and modification
- Clients who want to participate in the dividend purchase plan are required to complete and return a
hard-copy of the authorization form to Questrade. This form outlines the business rules and requirements
that the client must follow in order to subscribe to the DPP service. Make sure to indicate client ID
number, the account(s) to be enrolled, and the securities to be added. The form can be downloaded in
myQuestrade, our client services portal.
- If a client liquidates a security enrolled in the DPP then re-purchases the security, it must be re-enrolled in the program.
- Questrade does not allow partial enrollment, in which only a percentage of the dividends are re-invested.
- After the initial hard-copy authorization form, any subsequent modifications to the DPP can be submitted by email.
- Questrade does not issue DPP-specific confirmations or statements. Any DPP transactions are itemized on the client’s month end statement.
Trade execution and price
- The dividend received on the record date must be large enough to purchase a minimum of one unit of the security (based on the market price of the trade date). It is the client’s responsibility to ensure their share balance meets that condition.
- Questrade will purchase the largest number of whole shares based on market price. Any cash not used for the purchase will remain in the account(s) as a cash dividend.
- The trade execution date is the date the cash dividend is posted to the client
account(s) plus 1 (one) business day.
- The currency of the dividend will determine the market on which the trade is executed.
- The shares will be purchased at market price.
- The value date will be trade execution date plus 3 (three) business days. The entry describing the transaction is DPP.
- Only selected securities from TSX, NYSE and Nasdaq are eligible for enrolment in DPP. ADR securities are not eligible.