if you issue shares under the DRP you are retaining the cash from the dividend for the company to use. if you issue those shares at a 3% discount, say 1.455 (based on a share price of $1.5) then you pay a broker to buy back at the current market price (say the $1.5) they effectively be selling shares for 1.455 and buying them back at the same time on market for 1.5. my point is if the fund manager believes that the best use of shareholder capital is to buy back shares why on earth would they issue shares under the DRP? they could easily neutralise the drp (have a broker buy the shares required for the drp on market)
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)