Own CBA, QBE, or Domino's Pizza shares? Here are your DRP prices

Are you participating in these dividend reinvestment plans (DRPs)?

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Key points

  • ASX companies, post-earnings season, are implementing dividend reinvestment plans (DRPs), allowing shareholders to reinvest dividends into more shares with company-specific pricing formulas.
  • Commonwealth Bank's DRP price is set at $168.60 without a discount, while QBE Insurance's DRP price is $21.37, also without a discount. 
  • Domino's Pizza offers a 1% DRP discount, setting its price at $14.26. 

S&P/ASX 200 Index (ASX: XJO) shares are down 1% to 8,757.5 points on Wednesday.

Following earnings season, ASX companies are now paying out dividends and implementing their dividend reinvestment plans (DRPs).

DRPs enable shareholders to automatically reinvest their dividends in more shares instead of receiving a cash payment.

Each company has a formula for determining the DRP share price that investors will pay, using their dividends, to buy more shares.

Most companies use an average aggregate share price calculated from a defined period of trading after the dividend record date.

Sometimes, they offer a DRP discount to entice investors to reinvest.

Let's take a look at some DRP share prices.

Invested in CBA shares? Here's your DRP price

Commonwealth Bank of Australia (ASX: CBA) announced a fully franked final dividend of $2.60 per share payable next Monday, 29 September.

Australia's biggest listed company calculated its DRP share price by taking the average of the daily volume-weighted average market price of CBA shares sold on the ASX or Cboe over 20 trading days from 25 August.

This led to a DRP share price of $168.60, with no discount for investors.

CBA shares are $165.01 on Wednesday, down 1.1%.

Investors will receive their CBA DRP shares on 29 September.

What about QBE shares?

QBE Insurance Group Ltd (ASX: QBE) will pay a final dividend of 31 cents per share, with 25% franking, on Friday.

QBE calculated its DRP share price based on the volume-weighted average price of QBE shares traded between 27 August to 9 September inclusive.

This led to a DRP share price of $21.37, with no discount included.

The QBE share price is closed at $20.36, up 0.1%.

Investors will receive their DRP QBE shares on Friday.

What about Domino's Pizza shares?

Domino's Pizza Enterprises Ltd (ASX: DMP) announced an unfranked final dividend of 21.5 cents per share payable on 3 October.

The company announced a 1% discount for those who participated in the dividend reinvestment plan.

Domino's calculated its DRP share price by applying the 1% discount to the average of the daily volume-weighted average price of Domino's Pizza shares traded over a 10-day period commencing 8 September.

This led to a DRP share price of $14.26.

The Domino's Pizza share price hit a new 52-week low of $13.25 today, down 2.7%.

Investors will receive their Domino's Pizza DRP shares on 3 October.

Motley Fool contributor Bronwyn Allen has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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