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> I am inquiring about the ABC's of setting up a DRIP portfolio. Correct me if I am wrong: 1) It appears that one has to join something like Moneypaper, 2) Then send them enough money as outlined in their pamphlet to buy at least 1 share of each company which you want to set up Drips, 3) I am less clear about the next step -- Do you then send a check to each individual company each month? Thus, 4 Drips, then 4 different checks to the companies or is there a central broker so you can send one check detailing how you want it divided? <


You do not necessarily have to join Moneypaper or similar service. Many DRIPs may be started by direct purchases from the company. Go to http://www.stockpower.com to research details of most DRIP plans or direct stock purchase plans (DSP's). You can even completely enroll and purchase stock in some plans right at the site. I started my first DRIP with Home Depot via this site. Some companies make it very easy to start DRIPs by charging NO purchase fees on DSPs and by having LOW initial purchases. For instance, you can invest into Wisconsin Energy for as little as $50 which will get you a little over two shares and a fairly good dividend payout ($1.56/share annually with a stock price of about $22/share).

> Additionally, I would like to set this Drip up for my two children. They do not make enough money to invest themselves and this appears to be a good way to build up a portfolio for them. Has anyone any experience or thoughts on how the best way to set this up to minimize taxes -- specifically inheritance taxes. <

I imagine someone else would be more qualified to answer this question regarding taxes...
Welcome to DRIP's!
Thomas


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