Invest With Dividend Reinvestment Plans Golden CO

Building wealth DRIP by DRIP

Investors usually start with a bundle and hope to make it bigger. With direct investment plans, also known as dividend reinvestment plans (or DRIPs), you begin with next to nothing and you can end up with a bundle. DRIPs allow individuals to invest cash-even small amounts, perhaps $25 or $50-directly through a company without paying brokers' fees or commissions. These plans are offered by about 1,300 companies--among them some of the bluest of the blue chips.

Why you haven't heard about DRIPs before

There is a reason why DRIPs have been called "Wall Street's best kept secret." You haven't heard about them because companies can't advertise their DRIPs (by law). And you won't hear about them from brokers and fund managers because they can't sock you with big fees and commissions if you buy stock directly from a company. SEC rules make it difficult for companies to let the "secret" out to prospective investors. But some of the best companies in America--Coca Cola, Intel, Motorola, 3M, Exxon, Johnson & Johnson, Black & Decker, to name a few, have been offering DRIPs for years.

Why you should be interested in DRIPs

There are no fees or commission for purchases of stock through many DRIPs, so it becomes feasible to routinely make small cash investments. More than 700 of the 1,200 DRIPs we follow at our website, directinvesting.com, don't charge any fees, or at least only minimal amounts. Check the "no fee" box when you "select" DRIP stocks at our website to choose among companies that offer no-fee or low-fee DRIPs. ...