Lowering Your Costs: How to Take Advantage of Direct Purchase Plans
In today’s lean and mean stock market environment, there is a real appeal to stocks that provide a stream of dividend income that can be purchased at a relatively low cost even if you are investing very modest sums of money.
Direct purchase plans allow you to do just that. The plans are a form of dividend reinvestment plan that allow you to go straight to the source—the company itself—for all share purchases, including your initial shares.
Best of all, direct purchase plans are easily accessible and manageable through on-line accounts with the plan administrators, a select group that currently consists of four major firms.
...To continue reading this article you must be registered with AAII.
Already registered with AAII? Login to read the rest of this article.
to read this article and receive access to future AAII.com articles.