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Hi CC,

I called Pepsi's transfer agent and the person I talked to wouldn't send me a DRIP brochure until I had purchased the 5 initial shares. I requested DRIP information on three specific companies at Equiserve. They sent three copies of a list of their company plans and no brochures. They also e-mailed they don't have a plan with Baxter (they do).

Some of the info at netstockdirect.com and directinvesting.com doesn't square with brochures. According to the net sites, Questar (STR) and Summit Properties (SMT) require 1 initial share. The plans can be started with an inital cash purchase according to the brochures.

Is it just me or do you have trouble getting info?


I find PEPSI's actions a little unusual. Often in the world of DRIPs the cart seems to come before the horse. I can't say for sure how many DRIPs I've started only to have the prospectus arrive after registration. By law, here in Canada, a prospectus is supposed to be delivered into a purchaser's hands prior to purchase (in fact mutual funds here often have you sign a waver saying you read the prospectus prior to purchase). The very nature of DRIPs (starting with a single share) seems to make this safety measure unachievable.

As for information squaring with Netstock:

People often fail to realize that even though a company offers a DSP (direct stock purchase plan) it doesn't mean you can't start the DRIP through more traditional (broker) methods.

Disney offers a DSP with a $1000 minimum investment (which can be spread over 10 months I believe). At the same time you could go to a broker and buy 10 shares for approx. $300 and register in the DRIP that way.

Netstock does not distinguish between these possibilities (TBOMK). So what might be happening is your reading about a DSP that could alternately be registered by purchasing one (1) share through a third party.

OB
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