DRIP InvestingDRIP Investing is focused on utilizing Dividend Reinvestment Plans (DRIPs) to make small regular investments in a select company's stock. Companies offer these direct stock purchase plans to facilitate long term stock ownership. However, company DRIP plans pricing structure varies widely from plan to plan. Some DRIP plans are very attractive holding vehicles for your investment while other plans are more expensive than your typical low cost brokerage.
DRIP investing is a long term investment approach that uses dollar cost averaging to lower an investors total average cost per share by purchasing more shares when the stock price is low and fewer shares purchased when the stock price is higher.
Here is a list of the lowest cost DRIP plans for DRIP investing.