About DRIP Investments

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DRIP investments, or dividend reinvestment plans, are an inexpensive way for an individual to own stock directly from a company without going through a brokerage firm. Avoid the traditional cost of dealing with investment brokers by starting a DRIP investment plant using advice from a financial planner in this free video on investments.

Part of the Video Series: Investment Facts
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Video Transcript

Hi there, I'm Cathy Pareto, the founder of Cathy Pareto & Associates, certified financial planner here in Miami, Florida. In this clip we're going to be talking about DRPs. Now what are drips? DRPs are basically short for Dividend Reinvestment Plan. And it's a really neat and inexpensive and efficient way for individuals to own stock directly with a company without having to go to a brokerage firm to own it. The way that it works is you typically setup the account with the company and you can sometimes you're required to buy one share but most times you can actually just start buying the company stock at 50 dollar intervals depending on the price of the stock, you'll acquire different number of shares. And this is a really neat way to start investing in the stock market and particularly if you very little experience and you want to bypass the cost of a traditional broker. So once again, DRPs are a very easy way for investors to start investing in individual stocks and get their feet wet investing in the stock market. It's a really neat way to start your investment program. This has been Cathy Pareto in Miami, Florida.


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