Hello, John. Good to see some action on this thread. I'm not familiar with the TYC plan, but having a DRIP is usually a plus for me. A lot depends on the amount of the service charges. I'm a small purchaser, usually $100 or so at a time, so if they charge $5 per purchase, like some do, it's not worth it for me. A lot depends on your purchasing patterns and the company's rules.
I tend to favor DRIPs for stocks that pay dividends and don't charge any service charges. We have AWK, INTC, MOT, CMS, IES, WAMU and several others, and the only charges we incur now are a few pennies for purchases each time, and that's totally acceptable to me. Recordkeeping can be troublesome, though. You have to remember to add in your reinvested dividends to your basis or you'll pay extra taxes, and there's never a nice easy way to determine purchase prices. Still, if you intend to hold the stock for a long time it's worth investigating. Tell us about the particular plan, and good luck!
Rick |
