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

READER COMMENTS

Post a comment

Hide comment form

 | 

Read all comments (0)

Read recent comments

---

Permission to post your comment is assumed when you submit it. The name you provide will be used to identify your post, and NOT your e-mail address. We reserve the right to excerpt or edit for clarity any posted comments.
View our full privacy policy

Name:

E-mail:

Comment:

MORE: Kiplinger.com | Your Money

TOOLS:   E-Mail Article  |  Print Article  |  Reprint Article  |  Content Sales

E-MAIL ALERTS: Keep up-to-date with the latest Kiplinger has to offer

SAVE, SHARE & DISCUSS:    |   |   |   |   |   |   |   

ADD HEADLINES: