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DRP Overview

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Dividend Reinvestment Plans (DRPs, DRIPs)
Want to buy stocks without a Broker and pay no commission? Check out this site. You'll learn how to buy stock direct from the issuing company, using DRPs. DRPs are offered by over 1300 companies and many allow Direct Stock Purchase (also called DSPs, DPPs, DPSs, SIPs or SPPs). DRPs will reinvest your dividends and allow you to make Optional Cash Purchases (OCPs) when you want. And you pay little or no commission. The benefits:
  • Buy stocks direct! No Broker.
  • Little or No Commission!
  • Great for retirement fund.
  • Great for college fund.
Dividend Reinvestment Plans are referred to by many names/acronyms (we use DRP). These plans all serve the same basic purpose; they allow you to purchase stock direct from the issuing company. DRP plan terms and conditions differ. Each company describes its plan in a "Prospectus." Shareholder status (normally one share) is required by most DRPs. Some plans allow you to make your initial stock purchase direct, no broker needed. But be cautious, "direct plan" fees are generally higher. Read the "Prospectus" before you invest in any stock.

Stock1 offers the best research links on the Internet to assist DRP investors. Browse the DRP Stock List. It includes all the Dow30 and S&P 500 that offer DRP's. You will find a wealth of FREE information linked to each stock.

Why Buy Stock?
Stock is a good way to invest for the future, the most logical for most of us. Buy stock and you own an equity position in the company. There are several benefits:

  • Very little time required.
  • Doesn't interfere with your career.
  • The knowledge lasts a lifetime.
  • You may become financially independent!
Success in investing, like any other activity, is the result of knowledge. Commit yourself to understanding the world of investing. You will find it exciting and you will find it the surest way to reach major financial goals.

Why Buy DRPs?
DRPs allow you to purchase stock direct from the issuing company. And hundreds of companies offer programs. When you invest in DRP stocks, you get many benefits:

  • Buy direct.
  • No broker, No commission.
  • 1300+ DRPs available.
  • Invest when you want.
  • Invest as little as $10 periodically.
  • They are easy to use.
  • Proven way to financial security!
How Do I Start a DRP Program?
It can be confusing, but it is really very simple to do. Browse the DRP Stock List to find a stock that you want to research. Here's what you do.
  1. Research the Stock: Each stock in the "DRP Stock List" has a "Research" link which will take you a page of links to the best research information on the internet. Its FREE!

  2. Get the Prospectus: The prospectus describes the program in detail. You can contact the company direct to get the prospectus. Contact information for each company is provided at the "Research" link. If you use the online services of The Moneypaper Inc, you would get the prospectus from them. Its FREE!

  3. Qualifying for the Program: To qualify for most DRP Program, you must be a registered shareholder of at least one (1) share of their stock. Getting the initial share is the biggest hurdle to getting started in a DRP Program, but with a little persistence you will get it done.

    The initial share can be purchased through a Stock Broker. They charge a commission. Instruct the broker to register the stock in your name and mail the stock certificate to you. You must be a registered shareholder to qualify!

    You can use the online enrollment service of The Moneypaper Inc. For a small fee, they open the plan account for you, and once opened, you invest direct with the company.

  4. Enrollment Form: Once you have the certificate, contact the transfer agent to request an enrollment form. Complete the form and you will be enrolled. You will get a periodic statement of your account, with a tear off form to buy additional shares. You can also sell your stock through the transfer agent.
Simple as 1-2-3-4 . . .

The wealth building strategies of Stock1 involves investing in stocks, with a special focus on DRPs. We do not sell stock, we do provide the ideas and research information that will help you succeed in stock investing.

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