stocks

Invest in a Dividend Reinvestment Plan (DRIP)

DRIPs are investment plans that allow individuals to buy shares directly from a company and to reinvest dividends from these shares automatically, circumventing broker fees and commissions.

DRIPs are investment plans that allow individuals to buy shares directly from a company and to reinvest dividends from these shares automatically, circumventing broker fees and commissions. While enrolling in and maintaining a dividend reinvestment plan is not free, these plans allow individuals to start investing with little money.

Here's how to get started quickly:

1. Choose a company with a dividend reinvestment plan at Directinvesting.com.

2. Avoid DRIPs that charge setup fees, administrative fees or commissions.

3. DRIPs often require you to be a shareholder to participate. In that case, buy one share through a discount broker, then register the stock in your name.

4. For a fee of up to $50 per company, you can start a DRIP through the Temper Enrollment Service at Directinvesting.com.

ALSO: See our picks for investing in DRIPs for 2007 through 2008.

NEXT: Replace a Lost Savings Bond

JUMP TO:


Finance


Credit


Retirement


Investing

FINANCIAL TOOLKIT MAIN PAGE

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 25 Cheapest U.S. Cities to Live In
places to live

The 25 Cheapest U.S. Cities to Live In

Take a look at our list of American cities with the lowest costs of living. Is one of the cheapest cities in the U.S. right for you?
October 13, 2021
4 Big Retirement Blunders (and How to Avoid Them)
retirement

4 Big Retirement Blunders (and How to Avoid Them)

It’s too bad, but financial advisers see these four mistakes all the time. Don’t fall into the same traps.
October 6, 2021

Recommended

Stock Market Today (10/25/21): Trillion-Dollar Tesla Leads Monday Market Charge
Stock Market Today

Stock Market Today (10/25/21): Trillion-Dollar Tesla Leads Monday Market Charge

The Dow and S&P 500 notched new highs, while the Nasdaq moved within a chip-shot of its all-time peak.
October 25, 2021
Apple Among Big-Tech Earnings on Tap This Week
stocks

Apple Among Big-Tech Earnings on Tap This Week

Our preview of the upcoming week's earnings reports includes Advanced Micro Devices (AMD), Alphabet (GOOGL), Twitter (TWTR), Amazon.com (AMZN) and App…
October 25, 2021
Kiplinger's Weekly Earnings Calendar
stocks

Kiplinger's Weekly Earnings Calendar

Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
October 25, 2021
Stock Market Today (10/22/21): AmEx Lifts Dow to New Heights
Stock Market Today

Stock Market Today (10/22/21): AmEx Lifts Dow to New Heights

American Express's strong Q3 earnings shone as the Dow closed the week on a high note. Intel and Snap weren't so lucky.
October 22, 2021