When all is said and done, which is the best purchase to save $$$ when you want to invest in a long term drip from a single share purchase? Moneypaper has no transfer fees but a higher initial cost, Buy and Hold has the lowest cost but has charges to transfer the stock to your name and "discount brokers" have all kinds of hidden charges for a single stock purchase. I could not find a "discount broker" that could beat MP or B@H costs when I figured in all the transfer fees and limitations on drip reinvestments. There does seem to be no control with the prior programs as to what you pay for the stock though(time delay for actual purchase). What are some disadvantages to these programs when you want to sell your share(s)?
When all is said and done, which is the best purchase to save $$$ when you want to invest in a long term drip from a single share purchase? IMHO, the answer is pretty obvious. If the company you have selected has a DRiP, then MoneyPaper is easily the best way to go. If you select B&H then your fees will bypass MoneyPaper's on your 7th purchase.B&H is excellent for companies that either do not offer DRiPs or have high fee DRiPs. Better yet is to consider www.Sharebuilder.com. If you are truly considering regular purchases, then you can cut your costs by 1/3 by going with their program.What are some disadvantages to these programs when you want to sell your share(s)?If you are looking only in the long term, then it makes little difference. After a decade of purchases, if one costs a few dollars more to sell than another or takes a couple of weeks longer, then this really isn't much of an issue.Cheers -george
Hi, ybiomike!MyDiscountBroker.com charges $12 commission and will not charge to have the share registered in your name as long as you indicate it's for Drip registration purposes (see http://www.mydiscountbroker.com/faq.asp#additionalfees)This not only seems to be the least expensive way to begin a Drip, but I also think MyDB.com should be applauded for waiving the share transfer fee for Drip investors. Very Foolish of them.Fool on!Vince
Hi, TMFEIwoodThanks for your response. I looked at their website and they had some good general info. Have you done any transactions with them?Mike
Hi, Mike!I haven't used MyDiscountBroker.com, but I'm sure some other good Fools here in Dripland have. Perhaps they'll share with us their experiences?Fool on!Vince
I just opened a MYDB account last week. Sent in the paper work and a check for $100 last Thursday and everything was activated today. I purchased 1 share of HDI but could not figure out how to request the certificate on their web site. I called their 800 number and a rep was on the phone in 30 seconds. He said you currently have to call them to request the certificates to be sent to you. Should arrive within 2 weeks he said. I don't think $12 can be beat anywhere though I may be wrong. So far I've had nothing but good experiences with them and B&H, can't say the same for Suretrade.I'll keep you posted.
Hi PhilboyI agree with your My Discount Broker opinion. When you start to read all the fine print of all the other brokers, they are not for fools. A close second is Moneypaper( only $3 more and they do all the paperwork ). I invested in my first drip after holding the stock for 10 years (3M is the stock). I "joined" by mailing back their quarterly dividend statement to them that had a checkbox provided to request a drip to be started and did not have to request any special forms ect. I dont know if all companies have the same provisions but it might be worth waiting till you receive your first dividend statements and see if they have that option. Hope this helps.Mike
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