Maybank allows their dividends to be used to repurchase the Maybank stock itself. This exercise is called DRP (Dividend Reinvestment Plan), this option is not always available. Generally DRP is used by the company to conserve cash. If you do not wish to take up this DRP exercise, Maybank dividends will be paid as usual to your bank account.
Currently the repurchase price is RM 8, below current market price of RM8.90. Personally I feel shareholders should subscribe to Maybank DRP whenever possible as the Bank is quite well managed. It is better to have your money reinvested than to have it in your bank account and you can easily spent it away. Long term wise, Maybank has good prospects and is a well managed bank.
The price that Maybank does the DRP will depend on the average price of the Maybank stock for the past X number of days. The X figure is stated in the term sheet when Maybank announces the DRP.
In the past, subscribing to DRP was very cumbersome, I had to go to the bank to buy a banker's cheque and then fill in physical forms and then post to the share registrar company (eg Tricor or Symphony).
Fast forward today, these DRP application can be done online via Maybank's share registrar company, Tricor website. Just navigate to the website, register and upload picture of IC (front and back) and within few hours I got an email from them that my account was activated.
Once account was activated, I log into the website there's a drop down box where you will click it to select the particular company which has some sort of corporate exercise going on (eg AGM, EGM, DRP). Look for Maybank and then you will see the item on Maybank Dividend Reinvestment Plan row. Click Next then do a few acknowledgement on terms and conditions.
For the payment part I could pay using FPX to my Online banking.
There's an additional charge of RM 10 for stamp duty and RM 3 for handling fees. The stamp duty is a tax by the government while the handling fee is just a normal processing fee for Tricor to do the whole exercise for you.
Overall the process was very simple and straightforward. Kudos to Tricor for such a service.
I've written 2 articles about attending Maybank AGM both physical location and also virtual (due to Covid19). It could be worth a read for Maybank stock fans.
Updates 202106
Maybank's 2021 DRP now is on Boardroom share registrar site instead of Tricor. I wrote a post on it here :