How to I acquire initial shares of stock to enter a dividend reinvestment plan?
A. Some companies allow you to invest directly, providing what are called “Super DRP” plans. (Others allow only residents of certain states to do so.) However, most companies that offer DRPs require you to already own stockusually as little as one share, but sometimes morebefore you can participate. You must hold the stock in your own name, not in “street name.” If you own shares of a company in street name, just ask your broker to have the shares reissued in your own name. If you do not own stock, buy the required number of shares through a broker. An alternative to using a broker is to use an enrollment service. Two enrollment services are Tempers and National Association of Investment Clubs. Tempers can be used for most companies, while the NAIC serves a more limited group of companies. Temper of the Times Investor Services, Inc. 555 Theodore Fremd Ave, Suite B-103 Rye, NY 10580 Tel. (800) 388-9993 Some DRPs send you a certificate, and then enroll you in the plan. Others use book en
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- How to I acquire initial shares of stock to enter a dividend reinvestment plan?
