DRIP Investing, Step by Step

Discounts on Purchases

Some companies offer discounts of up to 10 percent on Optional Cash Purchases (OCPs) in their DRIPs. The shareholder actually purchases shares in his or her DRIP at a discount to the market price, which makes this one of the best deals around for DRIP investors (assuming, of course, that the company is a sound investment otherwise).

Unfortunately, many companies are discontinuing this feature in their DRIPs, so only a handful of companies now offer discounts on new purchases.

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