No. of Recommendations: 1
Q. How do I start a DRiP?

A. DRiPs are available to shareholders of the company. If your stock was purchased through a broker (discount or otherwise), you are not actually the owner, the broker is the owner.

You can become the owner by asking the broker for the certificate. Some provice this service free (Waterhouse), and some charge you for it (Datek - $50).

Once you become the actual owner of the stock, you can contact the company's transfer agent and request an application to the program. Once this is filled out, you will be enrolled and can begin to make regular purchases.

The certificate you receive can often be mailed to the transfer agent so that the shares the paper represents can be added to the program. Most companies offer safekeeping for your certificates so that you don't have to worry about holding it the next 10-20 years. In the very unlikely case that the certificate gets lost in the mail, you can get it replaced for about $5.

Purchasing through a discount broker is the cheapest way to do this. Alternatively, companies like MoneyPaper ( will purchase you the minimum number of shares required to qualify for the DRiP for a charge of $20. This extra money can often be well worth it for the first-time DRiPper or one who just wishes the convenience of this solution.

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