What Companies Offer DRIP Investments?

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DRIP investments are offered by most major firms in the Standard & Poor's 500, as well as by other companies in the United States. Invest long-term with DRIP investments using advice from a financial consultant in this free video on investments and personal finance.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

Drip, drip, drip. No, it's not raining. Hi, this is Roger Groh with Groh Asset. We're here this morning to talk about drip investments. What are they? A drip investment is when a public company is giving you and me the right to buy stock directly from them. Why would you do that? Well in some cases the total fees and commissions are less than you would pay for that stock at a brokerage firm. And in other cases it might very well be the transferability of that stock, meaning if you have a grandson or granddaughter and you're considering building an educational trust for them, you can buy stock in your name and then generally transfer it at low fees into their name where you remain as custodian of that stock. It's a great way to build a portfolio for kids. Most major firms in the Standard & Poor's 500 offer drips. But generally drip programs are based here in the United States. You don't find that happening so much in China or India or in Latin America although some companies do give you that right and they should come up in a general drip search that you do. So remember, drips aren't just for rain, they're great for long term investing. Hope that helps, I'm Roger Groh with Groh Asset and thank you very much for spending time with me.


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