Where to Buy DRIP Stocks
I am a fan of dividend reinvestment plan (DRIP), though I didn’t start participating till late last year. Currently, I have several stocks purchased through DRIP programs: Bank of America (BAC), Progress Energy (PGN), and Procter & Gamble (PG). The first two are from ComputerShare while the last one is from the company directly.
The main benefit of buying stocks directly from the issuer either through a Direct Stock Purchase (DSP) plan or a DRIP program is that you don’t always have to pay a commission when making a purchase as you do with most brokerages, though some DRIP programs also charge a fee for direct purchases and in some cases the fees are no cheaper than what you will pay through a broker that also offers dividend reinvestment. Therefore, when I decide which DRIP program to participate in, I only choose those with either no purchase fee or the fee is much lower than that’s charged by my brokerage firm such as Sharebuilder. Two of my DRIP stocks, BAC and PGN, don’t charge purchase fees.
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If you are interested in DRIP stocks, the following are some places that offer DRIP/DSP programs or related information:
- ComputerShare: Domestic stocks only and you can find many blue-chip stocks
- The Bank of New York Investor and Client Service: Offer both domestic stocks and ADRs
Also check out the related posts below for more discussions on DRIP programs.
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