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Can I Invest Automatically Each Month?

Back to: DRP Fundamentals
Automatic Checking Account Withdrawals:
Many DRP Plans allow you to automate the purchase of additional shares. You can invest a specified amount by having the transfer agent electronically debit your savings or checking account on a regular basis. You don't need write and mail the check.

Review the "dividend reinvestment prospectus" for the company to determine if they offer that option. Once you are enrolled in the DRP Plan, authorize the transfer agent to debit your account. Usually it's a simple matter of filling out a form. That's all it takes to get it started.

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