DRIPS was the topic in my previous post http://getwealthyfarmer.com/drip-way-ocean/. And today I would like to carry on with it to further explain and hopefully make the process easier for anyone wanting to use this tool to help build up their wealth. In the post before I had also left some links with which to visit to get more info and knowledge on this process.
So let’s get started shall we. First off is to pick the stock(s) that you would like to invest in. Then go and research whether they offer a DRIP plan or not. This can be accomplished a few ways but for me the two most common are either checking out the actual companies respective website and usually under investor relations this info can be found. The other way I check is by going to Canadian DRIP Companies or US DRIP Companies. Both those links will show you the companies participating in DRIP plans both in Canada and south of the border.
I myself do not participate in any US DRIPS by using transfer agents at this time but will look into it at some point. So for now I can talk about my experience with getting setup dripping with Canadian companies. Once you have picked the companies you want to start your DRIP in it is time to head over too ——–>DRIP Investing.org<——— once there click on the Community tab and register yourself on the forum. Then introduce yourself as a newcomer and start conversing with people.
Under the share exchange part of the forum is where you can place your request for anyone selling a share, leave some contact details and more than likely you will hear back from someone. Additionally you can peruse the posts and find someone posting about offering first shares then you simply need to contact them. Once contact has been made then usually a price is agreed upon which in my experiences thus far is typically the day price of one share of the stock requested plus a transfer fee usually around $10. Mostly everybody will do paypal or e-money transfers. Then they take down some more of your info and then send in a form to the respective transfer agent along with one share and get that share transferred into your name and info. You then will receive the share and some documents from the transfer agent which will usually be an OCP form or Optional Cash Purchase form as well as a DRIP form. The DRIP form is important to send back in if you want to reinvest your dividends and start buying fractional shares. If not sent back in then dividend cheques will get mailed out to you. The OCP forms are for if you want to send in a lump sum of money to buy additional shares to grow your position quicker with a company. Did I mention the greatest part of all this? No commission or brokerage fees so every red cent goes right to work on growing your wealth.
I hope this will help with your getting started in a DRIP. And by all means feel free to contact me if you any questions and if I cant answer them on the spot I sure will dig into and find out for you. Otherwise Happy Dripping!!!! 🙂
GFW