Procter & Gamble DRIP Program Updates
By Sun on Jun 25, 2007 in DRIP, Investing
Post viewed 975 times, 1 so far today
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.
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mapgirl | Jun 25, 2007 | Reply
YAY! My uncle has retired on all of his PG shares. (He was a research chemist there for many years.) I was recently discussing DRIPs with my boss and PG has always been one of my targets. I am going to tell him tomorrow about this!
Chuck | Jun 25, 2007 | Reply
The problem I have with drip stocks is if you get too many they become a real pain at tax time since you get a 1099DIV for each of them. With Zecco around (at least now) not sure why you would start up one of these plans if you didn’t already have one going.
2million | Jun 27, 2007 | Reply
Sweet! This is awesome news — I have an PG DRIP account and always hated the reinvestment fees.