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.
Related Articles You Don't Want To Miss
- Buy Stocks Directly at ComputerShare: The Complete Process
- Where to Buy DRIP Stocks
- S&P 500 High Dividend Paying Stocks
- Credit Card Companies’ Evil Tricks
- Invest Directly with Lending Club
- SmartMoney: 10 Things Your Credit Card Companies Won’t Tell You
- Generating Passive Income with Dividend-Paying ETFs and Stocks
- Well, Credit Card Companies are the Same
Trackbacks & Pingbacks
- Pingback by Bank of America Shares Purchased via DRIP - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time on November 13, 2006 @ 10:44 am
- Pingback by Bank of America Stock DRIP Program: Buy Stock Without A Broker on November 14, 2008 @ 11:56 am
5 Comments
Sorry, the comment form is closed at this time.
thanks for the link!
How do I know that my money is being properly invested with an outfit like Computershare? Where do I go to be sure this whole online purchase of stock is not just a Madoff scheme and I’ll never see a dime? Where’s the street address? Where’s the name(s) of the people actually handling my money? all the web sites for this outift have places to submit questions but no lice contacts. Whose running it?
The porcess looks simple enough but I don’t see anything to reassure me that if I sign up for a regualr draft for investing that my funds will go to what I want.
Bottom line: I’m ready to invest but who is operating Computershare, what is their background and why should I trust them?
@Raymond:
ComputerShare has been in this business for a long time. Answers to most of your concerns can be found on their website. The street address of ComputerShare is
Computershare Investor Services
P.O. Box 43021
Providence, RI 02940