I Need to Learn How to Invest in DRIPs to Make Money. Help!
Q. I need help to try to make money, and learn how to invest in DRIPs!
A. DRIPs are a low cost way to invest for the long-term in the stock market -- not to make money quickly. DRIPs allow you to buy shares directly from a company, usually at no or very low commissions. Also, your dividends are reinvested in additional shares of stock in the company instead of being paid in cash.
There are several ways of getting into a DRIP. You can use a service such as First Share . These will let you get started for just a few dollars, along with a membership fee. Or you can buy directly from the company in many cases. There are about 1,000 companies that offer direct purchase plans that then reinvest dividends for you. Or you can go through any broker. You'll need to have the broker issue the share in your name and send you a certificate, and many discount brokers charge for this service.
Also, make sure you know the minimum number of shares a company requires to enroll in its DRIP. Some require more than 1 share to get you started. To see a complete list of DRIPs and direct purchase stocks that are available, go to the DRIP Central Directory.