Maybank DRP Dividend Reinvestment Plans 2021 using Boardroom Share Registrar's website https://www.boardroomlimited.com/my/
Maybank's dividends has the option to be reinvested and used to purchase new units instead getting cash in your accounts. This activity is called DRP (Dividend Reinvestment Plan). Sometimes it's abbreviated as DRIP.
Similar to past years, this year's DRP is done via online but this time it's done via BoardRoom website instead of Tricor website. BoardRoom is another share registrar company in Malaysia like Tricor.
The process is quite straightforward, it's all a step by step form. In the past this form was in physical form called DRF (dividend reinvestment form) which had to be filled up and snail mailed to the share registrar's offices.
There's some fees involved in the DRP activity, RM10 stamp duty was levied and service charge of RM3. The stamp duty is the taxation to the government while service fee is more of a processing fee for Boardroom for the activity. This fees needs to be paid via FPX transaction.
No need to pay fees for the additional shares as all Maybank dividends will be converted into Maybank shares. Do note that this will cause your stock share holdings to have odd lots (not in quantities of 100, 1,000), you still can sell your share holdings in board lots (100,1000) but these odd lots will be harder to sell but hey some people leave odd lots in their share portfolio just to attend company AGM (annual general meetings).
The price of the conversion/purchase will be detailed in the prospectus document (on the Boardroom website). The price is usually the price of the average of 20 days share price of the Maybank shares in certain period.
If you just want dividends as cash in your account, no need to do anything, everything status quo. As for me, I opted to go the DRP option route as I view Maybank as a must have share in everybody's portfolio. Using the DRP option involves slightly more work (compared to cash dividends) but it's worth it in the long run as I'm compounding my holdings in Maybank shares aka slowly accumulating Maybank shares.
I've had Maybank shares/stocks for a couple of years already. I initially bought the shares/stocks to go to their AGM (pre-Covid19 days).
Some terms (Taken from the DRP document)
“Electable Portion” mean the whole or a portion of the Dividend to which the Board in its
absolute discretion, determines that the DRP applies.
“Remaining Portion” mean the remaining portion of the Dividend after the deduction of the
Electable Portion, where applicable.
The total dividends that can be converted via DRIP/DRP is "Electable Portion" + "Remaining Portion"
📍Links
📍Previous years Maybank DRP via Tricor share registrar.
https://propfessor.blogspot.com/2019/05/maybank-drp-dividend-reinvestment-plans.html