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GIVE KIDS THE
GIFT OF LEARNING!
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"Always sell what shows you a loss and keep what shows you a profit."
Reminiscences of a Stock Operator
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We get this question a lot, so we know it can be confusing. It is really very simple to do. Let's assume you have deciding to start a DRP Program investing in Coca-Cola. Remember the contact information and transfer agent in this capsule is for Coca-Cola. These specifics do not apply to other companies. Here's what you do.
- Get the Prospectus:The prospectus describes the program in detail. It is available from the company or the transfer agent that administers that program. Its free! Drop us an e-mail if you need contact information to get the prospectus of other companies.
- Coca-Cola Co. (symbol KO)
Contact: First Chicago Trust Co (800-446-2617). Automated ordering, enter 'COC' on your telephone keypad, confirm your selection to get the "dividend reinvestment prospectus" Coca-Cola research link
- Qualifying for the Program: To qualify for the Coca Cola DRP Program, you must own at least one (1) share of KO stock. You can buy that from a stock broker. Instruct the broker to issue you a stock certificate in your name. Its a requirement to qualify, the transfer agent must have you listed as a registered shareholder. I have used Dean Witter in the past, they charged a commission of about 10% of the stock value.
- Enrollment Form: Once you have the certificate, contact First Chicago Trust Co (the transfer agent) to request an enrollment form. Complete the form and you will be enrolled. They send you a periodic statement of your account, with a tear off form to buy additional shares. You can also sell your KO stock through the transfer agent. Fees for the KO plan are minimal, its all explained in the prospectus.
Enroll in DRP Plans Online
Moneypaper provides an online enrollment service that allows you to open any Dividend Reinvestment Program. Moneypaper makes enrolling fast and easy! Moneypaper opens the plan account for you, and once opened, you invest direct with the company. For more information: Enroll OnLine
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