Procter & Gamble DRIP Program Updates

Last December I bought some P&G shares through their direct stock purchase program as part of my income-generating portfolio. After comparing what the company charges for direct investment against commissions at ShareBuilder, I decided to go with the company instead of using ShareBuilder. Though the cost of each trade is quite low when buying a small amount, there are still some fees that I consider excessive. For example, there’s a $1 per share charge for additional investments on top of the $0.02 per share commission. This essentially prevents investors from making large investments as the fee could be tremendous.

Last Friday, I received an email from P&G about changes in their Shareholder Investment Program (SIP), which include:

• Enrollment Fee – None (used to be $7.50);
• Dividend Reinvestment Fee – None;
• Optional Cash Investment Fee (via Direct Debit) – None (used to be $1 per share plus $0.02 per share commission);
• Maximum Optional Cash Investment – $6,000,000 (one time and annual);
• Minimum Initial Investment – $250;
• Minimum Optional Cash Investment – $50;
• Sales Fee – $15.00 ($7.50 if requested online), plus $0.12 per share (used to be $10 stock sales fee plus $0.02 per share commission).

For DRIP investors, the removal of enrollment fee and investment fee is definitely a good news.

Related Articles You Don't Want To Miss

1. Chase Freedom Card Rewards Program Updates
2. Is DRIP still Worth the Effort?
3. Where to Buy DRIP Stocks
4. Bank of America Shares Purchased via DRIP
5. AMEX Downgrades Its Reward Program
6. BoA Expanding Its Free Trade Program
7. Firstrade Referral Promotion: $50 Referral Bonus Sharing Program
8. Zecco Referral Bonus Sharing Program Reopened