I use Shaebuilder for my investing but would now like. To own some DRIP stocks. What is the best way to purchase them? Right through the company. Thanks
Some DRPs allow for IRA investments others don't. Hold all my traditional DRPs outside of retirement plans, and began using Sharebuilder as a generic DRP.Going to build one position at a time there. In my retirement portfolio have a in my 401k, Large Growth, Large Value, an S&P, In my Roth I have T Rowe Price New Horizon and Emerging Markets, so thought I might go with some individual stocks. Have started with Pfizer, goal was to build it to 100 shares, then add another company researching both growth and dividend companies, but am thinking maybe 50 shares. Only up to 31 shares, but then, only started March 5.Right now I am just letting my almost $7 quarterly dividend get reinvested. So, if I may expand on this thread, any opinions on 1) going for 50 shares versus 100 shares, 2) having sharebuilder reinvest the dividend, since as far as I could tell that would be at no cost to me 3)any "tips" on growth stocks. I have been looking at Heska (HSKA), but could be redundant since PFE has an animal health exposure, that it is contemplating a spinoff, and Sirius (SIRI) which has already had nice gains YTD. Dividend wise, have no telecom exposure and have been looking at Verizon (VZ) over AT&T (T).Hope this isn't a hijack or out of bounds thing, but they just thoughts that occurred while responding.
Sorry, also, do you want to hold them in a retirement account? If, not, most you need to be the registered owner of at least 1 share ( varies by company). Others let you directly enroll for a minimum dollar amount. Check out Wells Fargo, Bank of New York and Computer share. Wells Fargo I have my HPQ, Computershare I have Coca Cola, Del Haize, Intel, Mattel, and Owens and Minor and Regions Financial. BNY I have my GE and Pepsi.They will give you a list of DRPs and DPP's (direct purchase plans) and Minimum initial requirements and fees.Wells Fargo and BNY seem quickest to invest optional cash, but seems BNY program was purchased by Computershare.Put 7 buys in, 2 at BNY 4 at Computershare last Friday (the 23rd) BNY already purchased my GE and PEP, WH already purchased my HPQ, but, still waiting on Computershare to purchase DEG, INTC, MAT and RF.
I think that the easiest way to DRIP is to open an account with a discount broker with fairly low commissions, that has provisions for reinvesting dividends and holding fractional shares.You certainly can invest directly with many of the companies or their stock transfer agent, but, often the bookkeeping can be a nuisance if you have several accounts.Have you checked with the DRIP investing board and its FAQ?http://boards.fool.com/drip-investing-the-basics-100090.aspx...Bob
I've been with Fidelity for decades so I haven't really shopped around on price. So FWIW, I drip a bunch of dividend stocks at Fidelity in tax deferred and regular brokerage accounts. After my initial purchase, all dividends are reinvested at no additional charge. No fuss, no muss.JLC
Thank you everyone
I actually just called Sharebuilder and they just told me that my account is set to reinvest dividends from my investments. So I guess I am DRIP investing??????? What is the difference from what I am doing as opposed to my going directly through a company?
I actually just called Sharebuilder and they just told me that my account is set to reinvest dividends from my investments. So I guess I am DRIP investing??????? What is the difference from what I am doing as opposed to my going directly through a company?That's sometimes called pseudo-dripping, in order to distinguish it from the kind of dripping done via a company's own drip plan.culcha
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