dealfinder500

Using DRIPs for Faster Compounding of Dividends

I've looked at several plans and many of them have ridiculous fees (particularly those done through computershare) - they'd charge you just for an ACH transaction, fees when you buy, fees for reinvesting the dividend, etc. Those plans just aren't worth it at all - using Sharebuilder would be much better.

But I have found some very good plans. Not all plans require you to register the stock in your own name before you can invest. For example, I enrolled in DUK's plan, and though I do have some shares in my brokerage account, I did not want to pay a fee to have it registered in my name, and I simply had to do a initial investment with DUK of at least $250. The only fee involved in the plan is a (currently) 5¢ commission (per share) when selling the shares. PFE also has a very good plan (though I believe it required an initial investment of $500).

If you are a long-term investor, a DSPP might be a very good idea, especially if you can only put in a little bit at a time.