Yes, I’m not in favour of either scrip or drip for HYPers who are reinvesting dividends. The reason is that these compel reinvestment into the originating share and that may not be the optimum choice. Better in my view, despite the costs, to accumulate the dividend cash which then delivers flexibility and choice of where to reinvest it in the portfolio once it has become economically viable to do so.
I’d possibly make an exception though for very small portfolios, especially where no new money is likely to be added, with modest income. In this case, waiting for dividends to accumulate to an economic sum for reinvestment might take far too long and in that situation scrip or drip might be preferable.
For example assuming a yield of 4.5% and a minimum economic reinvestment sum of £1,000, then the HYP would have to be worth at least £22,000 in order that the dividends could build up to that £1,000 in a reasonable reinvestment time of say one year. Any HYPer with a portfolio worth much less than that, where no new money will be going in, may prefer scrip or drip dividends.
But portfolios that small which are complete, ie. where no new money is being invested, will I guess be only a small minority of HYPers if they even exist at all.
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