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Sorry! :-)

AR1374,
welcome to the DRIP boards! The question you asked is probably the one that has had the most time devoted to it. Chances are that you are going to get a flood of responses, so let me be one of the first in the impending tidal wave. The answer really depends on you! Many people (including myself as well as the official Fool DRIP Port) utilize the services of the Moneypaper. The whole process is very simple.
1. You join their organization (you even get a discount because you are a Fool).
2. Select the company you wish to own, follow the process (which includes sending them the cost of the stock based on a recent high + a 10% cushion, and a $15 commission).
3. Wait for a confirmation from Temper of the Times (the people that do the actual transacting).
4. And then you will hear from the company directly or through their Transfer Agent. They will even send you a self-addressed envelope for Optional Cash Purchases (OCPs).
Very simple. Actually, I'm not even certain that you have to join Moneypaper (Dave Fish will probably answer this a bit more clearly), but I do know that as a member you do get lower commission charges ($15 v. $20). And, if the stock sells for less than what you included in your purchase price, they send you the difference.

Other Fools have opted to go the discount broker route. Equally economical, it just requires a bit more legwork on your part. You are the one that has to purchase the share (make absolute certain that it is registered in YOUR name, not a street name. This is critical!). Then you must contact the Transfer Agent and alert them to the fact that you are a shareholder and would like to have your dividends re-invested. If you choose this route, make sure that the discount broker does not charge you to register the shares in your name (I believe SureTrade and Ameritrade do not charge. Stay away from Datek, at least as far as DRIPs go because they charge you $50 to register the shares. Ouch!).

Whichever route you choose, the Fools will be right here to help you with any questions that you might have!

Welcome aboard and best of luck to you! Let us know how it works for you!

Fool On!

racerboy
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