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No. of Recommendations: 1
DRIP's were designed for the small investor who does not have a large chunk of cash to buy whole shares and pay transactions fees. But the idea is fading and the cost of participating in the DRIP for the small investor now is more expensive.

That seems to be correct.

Now, as to your problem.

When I sell shares Vanguard puts the proceeds into my cash account where it earns some small amount of interest while waiting for me to redeploy it. I'm guessing you could contribute to your own cash account once you establish an account with Vanguard and then, once you'd built up sufficient funds, buy whole shares.

However Vanguard does not work for free. I am charged $7.00 every time I buy/sell shares. It does not matter whether I am buying or selling one share or 100 shares the fee is the same. This is fine with me as I buy lots of shares at a time (I seldom sell shares as I am a buy and hold investor i.e. I buy shares in a particular stock until my holdings of that stock reach 1000 shares and then leave it to grow on its own (via reinvested dividends) while I buy shares in some other stock(s). My method will not work for you.

As far as I know Vanguard does not do DRIPs.

If you are only interested in DRIPing Kellogg shares I doubt Vanguard is the best broker for you.

However I urge you to look around and see if there is some other discount broker that charges less than you are now paying.

Every penny you pay in fees is a penny that won't be earning you dividends in the years to come.

Good luck!

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