Buy Stocks Directly from Companies? Absolutely!

I have always wanted to buy stocks from companies directly instead of going through a middle-man and paying anywhere from $4 to $7 per trade. However, I never knew where to go and how to start. So the plan has been put off and I really didn't actively pursue the idea. Then last night, I found what I have been looking for at Savvy Saver, who has a post about DRIPS (dividend reinvestment programs) and how to buy stock direct from Computershare (formerly EquiServe). Though the stocks will be purchased through Computershare, not really directly from the companies, there's no commission for most of the company stocks offered as companies pay for the fees. 

Following the instructions on Savvy Saver, I went on to check the companies and plans available for DRIPS at Compushare. Though there aren't many companies offering direct stock purchase and dividend reinvestment and some of them are relatively unknown to me, I was still able to find a couple of well established, dividend paying companies that I am interested in. For example, Bank of America, ExxonMobil, Verizon, Home Depot, and Pfizer. In addition, it looks like that there are some mutual fund offerings as well.

What I like this service, as summarized by Savvy Saver, is

that many stocks only charge a fee for selling, for example $15 regardless of the amount. Many have no fee for purchases, and automatic dividend reinvestment is almost always free. Some companies even offer small discounts. Most want a minimum initial investment ranging from $250-$1000, and monthly minimums (some offer quarterly) are typically in the $50-$250 range.

That means I don't have to have a big account and can buy a fraction of a share without paying any extra fees. I haven't really get into the details of all the plans yet, but it seems worth serious consideration.

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