Investor Relations

Dividend Reinvestment Plan

Canadian Western Bank's (the “Bank”) Dividend Reinvestment Plan (the “Plan”) provides holders of the Bank’s common shares and holders of any other class of shares deemed eligible by the Bank’s Board of Directors (together being “Eligible Shares”), with the opportunity to direct cash dividends paid on any class of their Eligible Shares toward the purchase of additional common shares. Currently, the Board has deemed that holders of the Bank’s Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 3 are eligible to participate in the Plan.

Common shares are purchased by a Plan Agent who acts on behalf of holders who have elected to participate in the Plan. The Plan Agent purchases such common shares, as directed by the Bank, directly from the Bank or on the open market through the facilities of the Toronto Stock Exchange. Shares purchased by the Plan Agent from the Bank are purchased at the Average Market Price (as defined in Section 7(a) of the Plan), or at up to 5% discount on the Average Market Price. Common shares purchased by the Plan Agent in the open market are purchased at the Average Purchase Price (as defined in Section 7(b) of the Plan).

The Bank will indicate in its quarterly financial press releases whether Shares will be purchased from the Bank or purchased on the open market. If Shares are to be purchased from the Bank, the Bank will also indicate the applicable discount, if any.

The most recent press release issued by the Bank regarding the Plan is available here.

The common shares and preferred shares of the Bank are listed on the Toronto Stock Exchange under the trading symbols CWB and CWB.PR.A, respectively.

To access the Plan documents, please click here.

For any questions regarding the Plan, please phone, write or e-mail the Plan Agent:

  • Valiant Trust Company
  • 600 – 750 Cambie Street
  • Vancouver, British Columbia V6B 0A2
  • Attention: Investor Relations

Alternatively, holders may consult Canadian Western Bank’s investor relations department:

  • Canadian Western Bank
  • Investor Relations
  • Suite 3000, 10303 Jasper Avenue
  • Edmonton, AB T5J 3X6

Questions and Answers:

  • What is a Dividend Reinvestment Plan (DRIP)?
    A DRIP is a company sponsored stock purchase plan that gives eligible shareholders the option to direct their cash dividends towards the purchase of additional CWB common shares (or fractions thereof).

  • What are potential advantages for shareholders who participate in the DRIP?
    • Lower cost investing – CWB incurs the costs of the plan which allows DRIP participants to buy shares without incurring brokerage, commission or other related fees. At the present time, CWB has chosen to issue DRIP shares from treasury at a 2% discount on the applicable average market price (subject to change at the Bank’s discretion)
    • Compounding – shares purchased through the DRIP are eligible for dividends on the next dividend date
    • Full reinvestment – where dividends are not divisible into whole shares, a participant receives a fractional share interest
    • Dollar cost averaging – dividends are reinvested at the applicable average market price on each dividend date
    • DRIP participation is voluntary and investors can choose to terminate their enrollment at any time
    • CWB’s preferred shares are also eligible under the DRIP and participants may choose to have their preferred share dividends directed toward the purchase of additional common shares

  • What are the risks for shareholders who participate in the DRIP?
    As with any equity investment, CWB’s common and preferred shares are subject to various market and other risks, including market price volatility. Before participating, all shareholders are advised to consult their financial advisors and to read the complete text of the Plan Circular.

  • Are CWB dividends “eligible dividends” as defined in the Income Tax Act (Canada)?
    Yes, CWB designates all dividends for both common and preferred shares paid to Canadian residents as “eligible dividends”, as defined in the Income Tax Act (Canada), unless otherwise noted.

  • Who may participate in the DRIP?
    Currently, enrolment in the DRIP is limited to Canadian residents who hold CWB common shares or Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 3.

  • How can I enrol in the DRIP?
    Registered holders—shareholders whose shares are registered in their name—may enrol by completing the Authorization Form and submitting it to the Plan Agent.
    Beneficial holders—shareholders who hold their shares in the name of a nominee such as a broker, investment dealer or financial institution—should contact their nominee to inquire about enrolment.

Further Information

For additional information on the DRIP, please refer to the Plan Circular.