Dividend Reimbursement Plans and Direct Purchase Plans


Research is important to any informative investment decision as it would be with any type of investment. Familiarizing yourself with past, present, and future plans of any company you believe to have investment potential is imperative. A review of the company's prospects provides these details along with features of the company's direct purchase plan and/or dividend reimbursement plan.

Majority of these DRIP plans require the investor hold at least one (1) share of the company's stock in their name before enrollment. Oneshare.com allows an investor to purchase one share of stock from many popular companies with a low transfer fee, and low  broker companies such as etrade.com allows you to buy multiples without heavy fees. Some companies will allow you to make a direct initial investment (some as low as $150.00) in substitute of owning one share.

There are a few companies that require at lease one share or a minimal direct initial investment to enroll into their DPPS, but a majority require a direct initial investment of at $150.00 or higher. Contact the company’s transfer agent or program administrator for a DPPS enrollment package. Once the initial investment has been made, monthly automatic payments of a certain amount is drafted from your designated banking institution. Some plans have minimal amount of $25 per month, while others require $150 per month – make sure to review the company’s prospects for details.

Once you have at least one share (or whatever amount required for your particular company), or have made your initial investment,  contact the company's transfer agent or program administrator for a DRIP enrollment package. Complete, submit - and you're enrolled. Many companies also allow investors to buy additional shares directly, some requiring a low purchase of only $10.00. More companies are offering the enrollment service online for even easier enrollment.


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