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DRIPs

July 13th, 2007 at 05:46 pm

I'm interested in getting into buying individual stocks utilizing DRIPs... I would like to avoid brokerage houses due to the fact that we can buy stocks directly from the company without too many fees, right? I looked into Toyota and their agent company wants a ton in fees to start an account, to buy additional shares later on, and to even reinvest the dividends. Am I missing something here? I thought DRIPs were supposed to provide a lower cost way of buying stocks but I could probably get Toyota stock much cheaper if I went through a brokerage house. The only other DRIP I have is with a national bank, but I got started with that when I was an employee (which was at no cost)... so all this is new to me. What am I not understanding?

3 Responses to “DRIPs”

  1. baselle Says:
    1184353397

    You're not missing anything, really. Every company that pays a dividend can have a DRIP, but every company runs their DRIP differently. Some have fees, some have really awful fees, some don't.

    Check out DirectInvesting.com - you can type in a ticker symbol and see if a company in question has a DRIP and what that company's DRIP is like. They also have good advice about investing in DRIPs.

    If you have your heart set on Toyota, then probably a DRIP is not for you, or what you do is put enough in so that the fee beats out the brokerage fee.

  2. PauletteGoddard Says:
    1184367762

    I know a URL would be helpful here, but there's some web page that evaluates the direct purchase programs and direct reinvestment programs of companies along with ShareBuilder and compares their merits.

    I do know this url:
    Text is DRIPCentral.com and Link is www.dripcentral.com/
    DRIPCentral.com and
    Text is Trading - Direct Investing and DRIPs and Link is http://invest-faq.com/articles/trade-drips.html
    Trading - Direct Investing and DRIPs

  3. Amber Says:
    1184378142

    Great post I too am looking for a great way to buy drips, I actually enjoyed directinvesting.com

    thanks Paulette for the links, I will check them out also

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