Research how dividend reinvestment plans can help
Published 9:12 pm Friday, March 12, 2010
A Dividend Reinvestment Plan (DRIP) allows investors to purchase stock in a company directly. But to participate in a DRIP, you generally need to already own at least a share of a company before you can start buying stock.
The World Wide Web contains many sites devoted to DRIPs. If you’d like to check out how a DRIP works and its role as an investment tool, here are a few sites worth visiting:
· www.DRIPAdvisor.com/ education/learnaboutdrips/index.asp. Offers overview of DRIP investing, benefits, limitations and tax considerations.
· www.dripcentral.com/online book/dripguidecontents.shtml. Features a complete online guide to DRIP investing.
· www.fairmark.com/capgain/basis/drip.htm. Discusses DRIP share basics, tax considerations, dividends and splits.
INVESTMENT FAQ
invest-faq.com/articles/trade-drips.html
Serves up a good overview of DRIP investing and a list of DRIP resources.
