Comments on: Where to Buy DRIP Stocks

By: Sun

Sun — Mon, 22 Sep 2008 18:43:48 +0000

Yazmyn: I mentioned directinvesting.com in my post, which is one place to buy DRIP stocks. If you want to get DRIP started, you can just buy one share of the stock from a broker, then have it transferred to a DRIP provider.

By: Yazmyn

Yazmyn — Wed, 17 Sep 2008 18:54:47 +0000

I suggest http://www.directinvesting.com. The purpose of DRIP is so that you don’t have to use a stock broker. Most of these companies that allow you to purchase these DRIP stocks don’t ever transfer the shares into your name. This is a problem because this truly does defeat the purpose. With directinvesting.com, they do all the legwork to get an account open in your name at the companies. You buy at least a single share of stock (or as many as 100 shares) from them. Then they get YOU on the books and records of the company as a shareholder and after that you can invest in the company directly if you want to buy more shares—WITHOUT GOING THROUGH A BROKER!!!!! http://www.directinvesting.com TRY IT & SEE!!

By: Sun

Sun — Fri, 12 Oct 2007 03:28:02 +0000

If you are using brokers such as Zecco, which charges $0 commission and offers dividend reinvestment, then there’s no on need to use DRIP. The reason for using DRIP, I think, is that you can buy stocks directly from
the company regularly, not through a broker, so you can pay less in commissions and fees. That’s not the case any more as most brokers do have dividend reinvestment and you can buy as many shares as as you want with a flat fee. However, if you don’t use Zecco and will pay commissions when buying stocks through your broker, then DRIP may still have some value. Computershares is a good place to find dividend-paying stocks. When I
bough a couple of stocks through Computershares, I looked 1) stocks with high dividend yield; 2) low or no account setup fee; 3) low initial purchase (<$1,000) and low subsequent purchase minimum; 4) no subsequent
purchase fee; 5) and low stock sell fee.

By: RV

RV — Thu, 11 Oct 2007 15:14:22 +0000

Hello All:

How do one select a stock(s) to invest in DRIPs? Like what are the metrics to look for?

If anyone could provide some relevant information, I would greatly appreciate it.

Cheers
RV

By: The Sun

The Sun — Fri, 30 Mar 2007 17:27:45 +0000

abhush: Actually, I thought about Zecco and like the idea of no-fee trading. The only reason I didn’t use it is that I think they are quite young (less than one year) and whether they can maintain the current fee structure isn’t clear. When everybody started to charge fees for mutual fund investing, Firstrade said they will keep it fee-free. They kept that promise for several years (I think it’s three), then started to charge fees for mutual fund investing early this year. I don’t know if Zecco can survive and continue to offer zero commission trading. I’d like wait a while and see what happens with them. Are you using Zecco?

By: abhush

abhush — Thu, 29 Mar 2007 04:58:52 +0000

I would recommend an alternative in zecco.com. You will have more control over the price at which you buy, making it a favorable dollar cost investing.

By: blackhawkzone

blackhawkzone — Mon, 19 Mar 2007 18:14:05 +0000

just so you know, some brokerages will reinvest your dividends for no charge.

Schwab did this for me and tradeking does it for me now.

By: Chuck

Chuck — Mon, 19 Mar 2007 11:56:17 +0000

I have quite a few DRIP stocks that my parents bought me when I was younger. In addition to the ones you listed and the one James said I also have used:

- Mellon Investor Services
- Wells Fargo Shareowner Online

By: James

James — Mon, 19 Mar 2007 04:20:19 +0000

Hey Sun,

Good call on the DRIPS, don’t forget about amstock.com, they do direct purchase and DRIP programs also!

-James