Lowering Your Costs: How to Take Advantage of Direct Purchase Plans

by Maria Crawford Scott

Lowering Your Costs: How To Take Advantage Of Direct Purchase Plans Splash image

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.

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Maria Crawford Scott is the former editor of the AAII Journal.


Discussion

John from Colorado posted over 3 years ago:

This is a great list to have, thank you. I agree though with the last comment in the article, this is not reason enough to purchase a company's stock.

The world has always been changing quickly but it feels more difficult in this day and age to feel confident in the long term prospects of any one company, which is how I would like to use this approach, investing a set amount each month.

I do appreciate this list for further research.


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