What are super DRPs and should I invest in them?
There are now about 100 U.S. companies with direct stock-purchase programsprograms that allow investors to buy a company’s shares directly from the company in stead of using a broker. Direct stock purchase programs are sometimes called “Super DRPs.” Like DRPs, direct-purchase plans cost an investor less, since there is no broker commission to pay, and often no fee. A Super DRP program makes buying shares easy. Some programs have automatic-investment options, which will debit a set amount each month from an investors bank account. Super-DRPs are less trouble to invest in than regular DRPs, which are offered by about 1,000 companies. With a regular DRIP, investors must (in most cases) buy at least one share of stock through a broker or an investment club such as National Association of Investors Corp. in Madison Heights, Michigan. Further, although most DRPs allow participants to buy additional shares directly, most allow purchases only once a month or once a quarter. Super DRPs are easi
