My wife and I are looking at investing via DRIP plans. I have found a couple of places where I can enroll in the plans. One is Bank of New York Mellon and the other is through Wells Fargo.
Does anyone know of any other sites I can go through to find companies to invest with? Is there a list somewhere of all companies that offer DRIPs? I have done some searches online and cannot find a whole lot, maybe I am not searching properly.
We are looking at about 3-4 stocks to purchase monthly this way at about $25 each. This is a get rich slow scheme and a way for us to diversify some investments.
I would look for a book listing the DRIPs. I bought one about 20 years ago that explained how to do it and listed hundreds of companies who offered them. Bottom line back then for most companies was to own at least one share of each company you wanted to enroll in and then just sign up. After that you can either send the company a check, whenever you want..... or (as I do) have a payment come out of your checking account once a month automatically.
It's a great way to invest over the long haul. I bought 12 different blue chippers and have slowly put into all of them over 20 years. One word of advice, make sure you check the company's DRIP rules before investing. You may need a certain number of shares. Most are 1 share minimum, but I saw one that required 100. Also, some (like utilities) require you to be a customer or employee.
Lastly, I did this back when you couldn't trade online like now. I had to find a broker willing to buy me 12 single shares. He thought I was crazy eating a $20 (x12) commmission to get one share of each.
Also, make sure when you buy the initial shares ..... whever you buy them ....... they must be in your name. If they are listed in some brokerage holding account name you usually cannot sign up in the DRIP.
Search "investing in DRIPs" and you'll find lots of help online.
I started twenty five years ago by purchasing one share (of one company at a time) and built an entire portfolio (all through the mail). Great way to learn how things work without much skin in the game. I never touched the dividends.... always used them to purchase more shares. My recommendation for a great company to start with would be Hawaiian Electric. They have a fantastic DRIP plan. I started with one share of HE and have over 10K now. Starting out by investing in DRIP's was the best thing I ever did.
Or you could buy into a mutual fund that has the type of stocks you are interested in and purchase via a "PIP" each month $X goes into the mutual fund......you can have dividends and cap gains reinvested. this would also give you some more diversification over 4 stocks.
Seems like those company's that do DRIPS are harder than they used to be. Nice low cost way to buy stock, but with the way Index funds and micro fee EFT's have grown, you can get into the stock market with very low fee exposure relative to the past.
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