- Raising capital; DPS Plans are a low cost and regular source of equity capital.
- Secondary stock offering price impact is reduced.
- Dividend reinvestment keeps the money in your company.
- The shareholder relationship is direct and creates brand loyalty.
- An effective marketing tool in which shareholders are often your best customers.
- Diversification of shareholder base will tend to (over time) reduce stock price volitility.
- Automatic debit plans create continuous buying support for your stock.