Summary
- DRIPs and DSPPs can be a convenient way to reinvest dividends and buy more shares, but doing that often is easier through your broker, particularly if you own more than one stock.
- DRIPs and DSPPs often charge fees for setting up the plan, reinvesting dividends, and buying and selling shares, making it cheaper to use your discount broker.
- Some companies offer discounts of as much as 5% on reinvested dividends. In those cases, it may be worth participating in a DRIP—but be sure that other fees don’t eliminate the benefit of the discount.
- Fifteen dollars to set up a DRIP? Are you kidding me?!
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