The recent market sell-off has delivered a nice little gift for many ASX shares investors using dividend reinvestment plans (DRPs).
The near-10% plunge in the ASX 200 between 14 February and 13 March coincided with the period in which many companies were calculating their next round of DRP share prices.
This means many investors will pick up DRP shares at lower prices than where they were on the day the dividends were announced.
Among them are Wisetech, Bendigo Bank, and Woolworths shares investors.
Let's take a look.
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DRP share prices for Wisetech, Bendigo Bank, and Woolworths shares
Under a DRP, shareholders authorise the company to reinvest their dividends in more shares instead of sending them cash.
Each ASX company has a different process for calculating its DRP share price.
This process occurs during the weeks after the dividend is announced and before it is paid.
Let's start with Woolworths Group Ltd (ASX: WOW).
Woolworths calculated its DRP share price by taking the average of the daily volume-weighted average market price of Woolworths shares from 10 March to 21 March.
This resulted in a DRP share price of $28.33 per share.
On 26 February, when Woolworths announced its interim dividend, the share price closed at $30.60.
This means the DRP share price is 7.4% lower than where Woolworths shares closed on the day the 1H FY25 results were released.
Today, Woolworths shares are trading at $29.72, up 0.58% for the day.
Woolworths will pay a fully franked interim dividend of 39 cents per share on 23 April.
It will issue the DRP shares on the same day.
Next, WiseTech Global Ltd (ASX: WTC) shares.
Wisetech determined its DRP share price by taking the average of the daily volume-weighted average price of Wisetech shares sold between 19 March and 25 March.
This led to a DRP share price of $83.83 for this round of dividends.
On 26 February, when Wisetech announced its interim dividend, the share price closed at $96.50.
This means the DRP share price is 13.1% lower than where Wisetech shares were on the day of the tech company's 1H FY25 results.
On Tuesday, the Wisetech share price is $81.43, up 0.25% for the day.
Wisetech will pay a fully franked interim dividend of 10.591211 AU cents per share on 11 April.
Wisetech will issue the DRP shares on the same day.
Finally, Bendigo and Adelaide Bank Ltd (ASX: BEN) shares.
The ASX 200 bank calculated its DRP share price by taking the arithmetic average of the daily volume-weighted average share price of all Bendigo Bank shares sold on the ASX between 5 March and 18 March.
This resulted in a DRP share price of $10.27.
On 17 February, when Bendigo announced its interim dividend, the share price closed at $11.37.
This means the DRP price is 9.7% lower than where Bendigo shares were trading on the day the bank released its 1H FY25 report.
Bendigo Bank shares are steady at $10.63 apiece on Tuesday.
The ASX 200 bank stock paid a fully franked interim dividend of 30 cents per share yesterday.
Bendigo also issued the DRP shares yesterday.
The bank estimated the DRP participation rate at 12.35% of shareholders.
