When you invest in inventory, most of the eternity you include to acquire a complete labourer. And most of the epoch, you include to pament fees and commissions Everyone period you acquire. Whether you've isolated got $100 to spend, this can significantly act on your investment options. Enter the dividend reinvestment disposition, or DRIP. DRIPs automatically invest your dividends in advanced shares of inventory, much fractions provided you can't afford a integral handwriting. This is a enormous path to painlessly constitution up your investment portfolio, expressly when you're starting small.
Instructions
1. Decide what stocks you want to buy and investigate their DRIPs. DRIPs are generally company driven, rather than brokerage driven, and every company makes its own rules. You can find information on DRIPs on company websites under "Investor Relations."
2. Buy a share of stock. Complete paperwork to enroll in the DRIP. This paperwork varies from company to company and in some cases you may be able to register online. If you cannot find the applications, call the company's investor relations department or look for its transfer agent.4.
In most cases, you only need to purchase one whole share of stock to enroll in a DRIP, but some companies may require more. You must make the purchase directly through the program or transfer the shares from your brokerage firm, as the shares must be registered in your name.3.
Monitor your accounts. Once you've completed the paperwork and sent it in, keep an eye on your DRIPs to ensure that all is working as planned.
