DRIP (Dividend Reinvestment Plan) and SPP (Share Purchase Plan) plans, are an ideal way for investors to buy shares of their favourite companies, with small amounts of initial capital. DRIPs combined with SPPs are especially powerful as they allow investors to dollar cost average their shares over the long run, avoid ongoing commissions, and to reinvest dividends into partial shares. It’s a win win for investors who have the patience and long term commitment required. As Mark points out in part-1 of the series, “There’s do-it-yourself investing and then there’s really do-it-yourself investing” .If you’re wondering why you should invest with DRIPs and SPPs in the first place, then be sure to read this superb guest post by Hank Coleman, Five Reasons I Love Investing with DRIPs, which inspired this series.
Mark at My Own Advisor concludes his stellar series on investing with DRIPs and SPPs, in Getting Started with DRIPs and SPPs, Part-4.
A Quick Recap…
If you missed this series, you’ll notice we split the posts into four parts, with Parts 1 and 3 posted here on the Dividend Ninja, and Parts 2 and 4 posted on Mark’s site My Own Advisor.
In Part-1, Mark defined what DRIPs and SPPs are, as well as the disadvantages and advantages of enrolling into these plans.
In Part-2, Mark continues with his series, and explains to readers how to get enrolled with DRIPs. Mark also explains to readers, that although companies may offer DRIPs or SPPs, it doesn’t necessarily make a good investment. Investors should do their due diligence and research, as they would with any other investment.
In Part-3, Mark explains how to purchase your first share and then get the share certificate. In this post, Mark describes how he purchased the share through his discount broker, instead of using a share board, and the steps he undertook for this process.
In Part-4, Mark continues where he left off in part-3, and describes how to register your share certificated with the transfer agent, and begin the DRIP (dividend reinvestment plan) and SPP (share purchase plan). He also concludes the series, with an explanation of why he stopped DRIPping, after several years, and transferred these holdings to his TFSA.
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Special mention to Mark of course, for writing this extensive series in the first place, and for sharing with Dividend Ninja readers. Mark is not only a knowledgeable and savvy investor, but also another blogger I’ve grown to respect and connect with over the months. His blog, My Own Advisor, is one of my favourites. I hope you enjoyed the series!