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.

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3 Responses to “Procter & Gamble DRIP Program Updates”

  1. Chuck |  Jun 25, 2007 at 9:49 pm

    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.

  2. mapgirl |  Jun 25, 2007 at 9:42 pm

    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!

  3. 2million |  Jun 27, 2007 at 10:45 am

    Sweet! This is awesome news — I have an PG DRIP account and always hated the reinvestment fees.