"W. Wells" <otf70[at]nc.rr.com> wrote in message
news:1n6wf.3718$Kp.3168[at]southeast.rr.com...

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That is new to me. My guess is that it does not happen often, and, even so,
such a fee is minor compared to the DRIP's savings in brokerage fees.

I am saying that you had better keep a watch out for them. I have been doing
DRIPS since they started and several of the stock companies gave their
admininstrative work to a bank and the bank charged for every dividend
transaction, usually 2 to 3 dollars each.
"Don" <dwzimm[at]telus.net> wrote in message
newsUWvf.32967$km.23621[at]edtnps89...
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"W. Wells" <otf70[at]nc.rr.com> wrote in message
news:%jOvf.3085$iQ.409[at]tornado.southeast.rr.com...

I have been in DRIPS for many years. They work find until the company that
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That is odd. In the dozen or so DRIPs I have held, both in US and Canadian
companies over a period of some 7 years, I have never had that problem. I am
not sure what you mean by a "service company" (transfer agent?), but the
ones that manage my DRIPs have always taken care of dividend re-investment
without fees.

I have been in DRIPS for many years. They work find until the company that
you are investing in decides they are tired of messing with your account and
turn it over to a service company to handle it. Then the service company
(usually a bank) wants to charge you a transaction fee everytime you get a
dividend. It can get expensive. I ended up turning my drip over to
Ameritrade so that I could get my dividends without having to pay for them.
"mysky23" <aaronbroadway[at]yahoo.com> wrote in message
news:1136306410.333698.220470[at]g43g2000cwa.googlegroups.com...
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"Tess Millay" <elle_navorski[at]earthlink.net> wrote in message
newsYGuf.2358$%W1.1586[at]newsread2.news.atl.earthlink.net...

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Yes, that makes sense and could happen, and I would not suggest that anyone
invest in DRIPs in blue chip dividend-paying stocks exclusively. Personally,
I hold few mutual funds besides the DRIPs. As far as that goes, I would not
suggest that anyone invest in stocks exclusively. Real estate is a good idea
too.

"Don" <dwzimm[at]telus.net> wrote
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diversification is not so important an issue
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Been reading _Value Investing: From Graham to Buffet and
Beyond_ (2001, Greenwald, Kahn, Sonkin, Van Biema). The
authors make quite an argument that these behemoth blue
chips are not going to give one the diversity needed to
support serious, yet low risk, growth. In other words, sure,
they're safe, and the dividends keep pace with inflation and
then some (knock on wood). But what one /could/ have in 20
years for the same amount of risk (but quite a bit more
effort when it comes to stock picking) is what is bothering
me. Just a thought, emanating from some others posting here
on Graham and similar styles.

Good report on DRIPs, otherwise.

"mysky23" <aaronbroadway[at]yahoo.com> wrote in message
news:1136306410.333698.220470[at]g43g2000cwa.googlegroups.com...

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I have been in DRIPs since 1998 and am happy with the results. Mine are
mainly blue chip companies that have a history of gradually rising
dividends. If you are going to take advantage of a dividend reinvestment
feature, I reason, why not select companies that pay substantial dividends
(which are improving over time). Also, the blue chips are not as vulnerable
to the market downturns, and diversification is not so important an issue
with these stable companies. And a little math shows that, in the long run,
compounding without fees, MERs, or brokerage charges can make a substantial
improvement in overall gain.

Hello,

Was reading about DRIP investing on www.dripyourstocks.com and wanted
to get feedback from anyone who has used DRIPS. Good Stocks for DRIPs?
On www.dripyourstocks.com I was reading on the blog about BAC? Anyone
done a drip with that company?

Thanks