I think the fees you mentiones on Reuters' DRIP are exorbitant. As you pointed out, these would easily eat up any advantage you'd get from being in the DRIP, unless of course you're a big-money investor (I'm not.)
Intel is a good example of a DRIP that doesn't do this. I don't recall if we get charged a couple pennies for brokerage or zero with Intel, but it's very minimal if there's a charge at all. No annual maintenance, no fees for reinvested dividends, and perhaps a few cents per share for selling thru them (though we haven't sold any Intel!)
We also like Washington Mutual, CMS Energy (they have a no-load initial purchase now), American Water Works, Motorola, Nucor and a couple more. My wife has McDonald's, but they went to a charge system a while back and I don't like it, even though it's small. They get $3/year maintenance fee and I think charge $1.50 or so each time cash or dividends are reinvested. Better than the Reuters structure!
There are still enough companies that don't charge that I am staying away from those that do (unless it's the few pennies like some of the above.) It looks like more companies are instituting fees, though. Everyone wants to cut expenses, I guess!
Good Luck,
Rick |
