How To Start A Direct Stock Purchase & Dividend Reinvestment (DRIP) Portfolio
Overcoming the FEAR of Getting Started
The best way to get started with direct stock purchase and dividend reinvestment is for the investor to overcome their FEAR of losing money, (FEAR is "False Evidence Appearing To Be Real" Gary Busey, Actor). The best way to overcome one's fear it to understand the dynamics of the US Stock Market. It is comprised of buyers and sellers. When the buyers out number the sellers, then the Market will probably increase, and when the number of sellers out numbers the number of buyers, then the Market will probably decline in value. Buying is generally accelerated by high expectation of stocks increasing in value, while selling is generally characterized by fear that stocks will decline due to certain conditions that influence investors' decision making. In a nutshell, "there is nothing to FEAR, but FEAR itself" (President FDR).
Now that the fear issue has been addressed, how does an investor start a DRIP portfolio. The following video accurately describes the process of investing via a DRIP portfolio. No need to reinvest the wheel. Listen intently to what he is saying. The step by step process will be outlined after the presentation.
Dividend Investing-creating a non-stop Passive Income
Buying Directly From Companies via Transfer Agents.
The most common transfer agent is ComnputerShare (www.computershare.com). This agent represents about 3,000 to 5,000 plus companies, and most of the major stocks (Walmart, Costco, IBM, BUD, Coca-Cola) can be bought through them. A potential investor can simply log onto their site, and go immediately to the "investment center". They can then Locate the symbol which shows a human hand putting money into a piggy bank. They should be able to click onto the symbol, and immediately they would be able to start the process.
- Computershare United States
Computershare specializes in the provision of software solutions and professional services to the securities industry and their shareholders.