DRIP Investing, Step by Step
Giving a Gift of a DRIP
Many parents and grandparents use DRIPs to build a college fund for their children and grandchildren. Besides being a great long-term savings vehicle, DRIPs can instill in these children and young adults an understanding of the importance of investing in the stock market.
Some DRIPs, including Exxon-Mobil and Texaco, have formal programs to enable investors to give a gift of stock to another individual through their DRIPs. McDonald's will even send a replica stock certificate to the recipient notifying them of the gift. Even if a DRIP doesn't have such a program, it is still possible to give a single share as a gift by transferring the share to its new owner.