Comments on: Why Direct Stock Purchase Plan Still Makes Sense http://www.thesunsfinancialdiary.com/investing/direct-stock-purchase-plan-dspp-sense/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andrewhttp://www.thesunsfinancialdiary.com/investing/direct-stock-purchase-plan-dspp-sense/#comment-63239 Andrew Fri, 06 Aug 2010 18:20:45 +0000 http://www.thesunsfinancialdiary.com/?p=4376#comment-63239 I do not think many people are aware of the disadvantages of the Direct Stock Purchase Plan. First you have to no control over of the price and time the stock is sold. I was in a direct investment program at Proctor Gamble and they have 2-3 days to sell the stock after you first give the sell order. Imagine if I had sold during that 40% drop in price on one day in May. I would have lost alot of money. Secondly if you use the dividend reinvestment part your taxes will be nightmare later. You have to use the stock price at the time of purchase. If you do a dividend reinvestment four times a year. Well imagine the headache. This is what most people do with the dividends reinvest them. Thirdly the prices are now the same as any discount brokerage for buy or selling stock. Fourthly many of the DRIP pograms cannot transfer the money to your accounts. Instead you get a check per mail. Also when you close the account. My examples GE and PG. Finally the customer service at these places are not the best. One of my stock transfers was completed wrong and instead a stock certificate was sent to me. My recommendation: own the stock through a brokerage if you have a choice. I do not think many people are aware of the disadvantages of the Direct Stock Purchase Plan.
First you have to no control over of the price and time the stock is sold. I was in a direct investment program at Proctor Gamble and they have 2-3 days to sell the stock after you first give the sell order. Imagine if I had sold during that 40% drop in price on one day in May. I would have lost alot of money.
Secondly if you use the dividend reinvestment part your taxes will be nightmare later. You have to use the stock price at the time of purchase. If you do a dividend reinvestment four times a year. Well imagine the headache. This is what most people do with the dividends reinvest them.
Thirdly the prices are now the same as any discount brokerage for buy or selling stock.
Fourthly many of the DRIP pograms cannot transfer the money to your accounts. Instead you get a check per mail. Also when you close the account. My examples GE and PG.
Finally the customer service at these places are not the best. One of my stock transfers was completed wrong and instead a stock certificate was sent to me.
My recommendation: own the stock through a brokerage if you have a choice.

]]> By: tpedwardshttp://www.thesunsfinancialdiary.com/investing/direct-stock-purchase-plan-dspp-sense/#comment-62550 tpedwards Thu, 29 Apr 2010 15:18:33 +0000 http://www.thesunsfinancialdiary.com/?p=4376#comment-62550 Good article, except for one issue. The example you raise for DSPP - GOOG doesn't work. ComputerShare does not offer a DSPP for Google shares. As a matter of fact, today, the only internet company offered by ComputerShare is Yahoo.Are you aware of a DSPP for Google? I certainly am interested in that one!tpedwards Good article, except for one issue. The example you raise for DSPP – GOOG doesn’t work. ComputerShare does not offer a DSPP for Google shares. As a matter of fact, today, the only internet company offered by ComputerShare is Yahoo.

Are you aware of a DSPP for Google? I certainly am interested in that one!

tpedwards

]]> By: JOAOhttp://www.thesunsfinancialdiary.com/investing/direct-stock-purchase-plan-dspp-sense/#comment-61872 JOAO Tue, 02 Feb 2010 20:05:17 +0000 http://www.thesunsfinancialdiary.com/?p=4376#comment-61872 Very good post I won an account with I.B I wanted to make a portfolio As taxes and fees were too high I gave it up Seeing the DSPP and Drip I want to do it. But as a Non us resident the doors are close and in EU I do not have information or tools unless I pay a lot of money and then is no return They eat all the dividend and do not give anything. I am tracking RCI MCD O ctl kmp I will start I an sure thanks for your help Joao Very good post I won an account with I.B
I wanted to make a portfolio As taxes and fees were too high I gave it up Seeing the DSPP and Drip I want to do it.
But as a Non us resident the doors are close and in EU I do not have information or tools unless I pay a lot of money and then is no return They eat all the dividend and do not give anything.
I am tracking RCI MCD O ctl kmp I will start I an sure thanks for your help
Joao

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