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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (35321)	9/10/2009 1:32:09 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78751

I have the broker do it, so it's not exactly an "official" drip program. It is automatic like a drip program. My understanding is that with an "official" drip program, the company offering a 'drip' deals with a custodian and so shares must be held there (and not at my brokerage). That has seemed too complicated for me. And seems to take away some flexibility (so easy to add shares or sell shares with a brokerage account). Also all my drip stocks are in an ira. Otherwise (in a taxable account) I would have to consider cost basis, tax reporting stuff for these quarterly/monthly dividend amounts when I sell shares. (I don't know if it's possible to have an official drip stock inside an ira.) The drawback to the way I do it is that I don't get any discounts if they are offered by any of the companies. And I have to pay brokerage commission, which for some official drips(?) would be paid by the sponsoring company. I find the commissions I pay here painless (Ha! That's just what the broker wants.) I get notification that I received $xxx.xx dollars and that money's been used to buy yy.yyy shares. I never know the exact day/time that the purchase is actually made. Perhaps I've not looked closely enough to be correct. If others here who do have drip programs can allay my concerns or correct any misperceptions, please comment.