If the company has a "DRIP" indicated next to it, it offers a Dividend Reinvestment Plan. (Companies indicated with a "DSP" offer Direct Stock Purchase Plans, not covered here.)

Get the Prospectus.
You should get a copy of the prospectus before you invest. Read the prospectus to determine the terms and conditions of the Plan. Drop us an e-mail if you need contact information to get the prospectus.

You Must be a Registered Shareholder.
To qualify for a DRIP, you must be a registered shareholder. That means you must own or buy one (1) share or more to qualify. You can buy any of the stocks on the "DRP Stock List" from a stock broker (Stock1 does not sell stock). You must have the certificate delivered to you and registered in your name. This will take 3-5 weeks.

Transfer Agents.
DRP Plans are normally administered by transfer agents (banks). Some companies (typically utility companies) administer their own programs. Once you have the initial share(s), contact the transfer agent to request enrollment forms. You will need to provide your Social Security Number.

Complete and return the enrollment form. Each plan may offer different reinvestment options on the enrollment form. Choose the options that you prefer. The transfer agent will open your account and you will get forms to make additional stock purchases. These are called Optional Cash Purchases (OCP's). You will also get a regular statement that details stock purchases and sales in your DRP account.