What does DRP mean in shares?
James Williams
Updated on March 14, 2026
dividend reinvestment plan
A dividend reinvestment plan (DRIP) is a program that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date.
How is DRP shares calculated?
The number of DRP Shares you receive will be calculated by multiplying the number of Participating Shares you hold on the business day after the Dividend Record Date by the relevant Dividend, deducting any withholding tax (if applicable), adding any carried forward residual cash balance (if applicable), and then …
How much were CBA shares when floated?
The shares were issued on 12 September 1991 at an issue price of AU$5.40 – which could be called as its floating price.
Do you pay tax on DRP?
Dividend Reinvestment Plan (DRP) Any dividend applied to acquire shares under the dividend reinvestment plan forms part of your Australian taxable income. You’re subject to Australian tax on any capital gain you make when you dispose of shares you received under the DRP.
Do ETFS pay dividends?
Here we road test the best Australian dividend ETFs and global dividend ETFs listed on the ASX….Best Australian high dividend ETFs.
| RDV | |
| 1 Year Total Return | 41.13% |
|---|---|
| 3 Year Total Return (P.A.) | 5.32% |
| 5 Year Total Return (P.A.) | 6.70% |
| Dividend Yield | 4.28% |
What companies offer DRP?
Some more well known businesses to offer reinvestment plans include Commonwealth Bank of Australia (ASX: CBA), Woolworths Limited (ASX: WOW), Magellan Global Trust (ASX: MGG), Challenger Ltd (ASX: CGF), Macquarie Group Ltd (ASX: MQG) and Dicker Data Ltd (ASX: DDR).
How much capital gains tax do I pay on shares?
CGT is payable at a rate of 20% for higher and additional rate taxpayers and 10% for others, unless business asset disposal relief or investors’ relief is available (which will reduce the rate to 10%). When working out whether the lower 10% tax rate is available, any capital gains are added to income.
Why is CBA so high?
Commonwealth Bank shares have touched record highs above $100, in a sign of growing investor confidence bank profits will be boosted by the economic recovery, leading to share buybacks or special dividends.
How does the DRP work for CBA shareholders?
The DRP allows eligible shareholders in Australia and New Zealand to reinvest all or part of their dividends to receive additional shares instead of a cash payment. It is a convenient way to increase your holding of CBA shares, without incurring transaction costs.
How is the number of CBA shares determined?
It is a convenient way to increase your holding of CBA shares, without incurring transaction costs. the number of shares you receive will be based on the Market Price (which is determined under the DRP Rules by reference to the price of CBA shares)
What does DRP stand for in Commonwealth Bank?
DRP means the Commonwealth Bank Dividend Reinvestment Plan implemented and maintained by the Directors pursuant to the Constitution; DRP Notice means a notice in such form as the Commonwealth Bank may from time to time require; DRP Shares means Shares in respect of which a Shareholder has elected to participate in the DRP;
How much is a share of DRP stock worth?
If the average closing price is $10, the company will issue shares at the discounted price of $9.80. The investor who owns the 1000 shares under the DRP will now receive 51 shares (500/$9.80) for a total value of $499.80. The investors DRP account is credited with the 20c remaining, which is then put towards their next allocation.
