On the money
A Dividend Reinvestment Plan (DRIP) program is one way to buy stock in a company without having to go through a broker.
In each case, you generally need to already own at least a share of a company. But then you can purchase more stock directly from the company or the company’s investment agent, usually a bank. Some direct purchase plans involve a nominal transaction fee for a purchase and sales.
The Web offers a plethora of sites that explains how a DRIP works and lists companies with direct stock purchase plans. To find out more about DRIP programs, here are a few places worth visiting:
- DirectInvesting.com
Search for companies with DRIP plans by industry and plan requirements.
- DRIP Central
Good location for DRIP insights and resources.
- EquiServe
Features comprehensive list of companies offering DRIP equity investing.