Jimmy_C, Agree with your point about shareholders in high ROIC...

Jimmy_C,
Agree with your point about shareholders in high ROIC companies better off having each $1 of profit reinvested in their business rather than paid out as cash but a DRP allows that profit reinvestment to happen and also generates additional value for most shareholders eg for a pension phase Super Fund the $1 received is worth $0.43 more, $1 immediately reinvested in new shares via DRP, the $0.43 received as tax refund; for an accumulation Super Fund the $1 received is worth $0.21 more; for a company (including corporate beneficiary of a trust), the benefit is a $0.30 reduction in deferred tax liability (tax when the shares are realised or current year if marked to market)