"With the number of Dividend Reinvestment Plans offered by U.S. corporations now over 1,200 and with over 400 companies now offering DIRECT STOCK PURCHASE PLANS that allow investors to purchase stock directly from the company or its plan agent, it’s amazing that most companies have no idea how well their own Plan is doing relative to the average plan, or to the plans of peer companies, much less to the best–in class. That’s why we are launching our Benchmarking and Mapping Program," according to Carl Hagberg president of CARL T. HAGBERG and ASSOCIATES, a shareholder relations firm based in Jackson, NJ.

The program will collect, analyze and "map" statistics – on a strictly confidential basis – on roughly 30 indicators of Plan success. Each company in the survey will be able to see how well its own Plan is doing relative to all the Plans in the survey and relative to five or six "peer groups," whose results (but not their identities) will appear on the various maps. Each participating company will also receive a confidential analysis of its own Plan’s performance and to the factors that appear, statistically, to be driving Plan success or the lack thereof.

"DRPs and Direct Stock Purchase Plans are among the best benefits a company can offer its investors, its employees, its loyal customers and its would–be–investors... if they’re designed properly, marketed properly and priced properly," says Hagberg.

Well–designed Plans also provide big benefits to corporations. A stronger and more committed base of long–term owners, employee owners and customer owners can provide strong support for long–term corporate strategy and, in many cases, for sales too, which is why most retail–oriented companies offer some sort of DRP or DSPP. Capital intensive companies, such as utilities, REITS and other financial institutions can also raise significant amount of low–cost equity capital with these plans, says Hagberg. "Over the past 25 years electric utilities have been using them to raise half or more of the equity they’ve needed."

But poorly designed or poorly targeted programs can be a bust for corporations and shareholders alike. "Perhaps the worst instance I’ve seen; a corporation that mailed 70,000 sets of Plan materials to customers, at a cost of well over $1 million, to attract only 7,000 new investors."

The cost to participating companies is $2,500. Subscribers to The Shareholder Service OPTIMIZER, Hagberg and Associates’ flagship publication, will receive a 10% discount.