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About Dividend Reinvestment ProgramsEdit

These programs typically require that you own shares of the company's stock directly, rather than through a brokerage. In the old days, that meant that you had hold actual certificates as proof of ownership. Nowaday, most plans provide for "paperless book" ownership of the shares. While some company's require that you buy your initial shares through a broker, a good many now include a Share Purchase Plan that allows you to buy directly from the company, often without having to worry about commissions.

The basic advantage of these programs, is that you can turn dividend payments into new shares without having to pay commissions. This is particular good if the company's shares have a history of appreciating.

Pros:

  • Helps facilitate dollar-cost averaging.
  • Reduces the expense of commission.

Cons:

  • Each company plan has to be tracked separately.
  • More transactions that have to be kept track of in terms of Cost Basis for capital gains reporting.

As with anything else, the companies responsible for any of these programs should be investigated prior to investing. Also keep in mind that the details of the program can vary from one company to another.


Programs available for an initial investment exceeding $500 Edit

CompanyTickerPhoneMinimum
Initial
Investment
AFLAC Inc.AFL800-235-26671000
American Tower CorporationAMT800-524-44581000
Ameriprise FinancialAMP866-337-49991000
Anadarko Petroleum Corp.APC888-470-57861000
Annaly Capital Management Inc.NLY800-522-66451000
Anworth Mortgage AssetANH800-937-54491000
Atmos Energy Corp.ATO800-937-54491250
AvayaAV866-222-82921000
Bank of America Corp.BAC800-642-9855 1000
Bank of New York Co.BK888-643-42691000
Brookeline Bancorp BRKL800-937-54491000
Chesapeake Utilities Corp.CPK877-498-30101000
DaimlerChrysler AG DCX800-470-74181000
Darden RestaurantsDRI 877-602-7596 1000
Dow Jones & Co.DJ800-851-42281000
Edison InternationalEIX800-347-86251000
Entergy Corp.ETR800-333-43681000
Equity Lifestyle Properties, Inc.ELS 800-247-52491000
FedEx Corp.FDX800-446-26171000
Ferrellgas PartnersFGP800-730-60011000
Fidelity Southern CorporationLION800-524-44581000
Ford Motor Co.F800-279-12371000
Health Care Prop. InvestorsHCP800-524-4458750
Health Care REITHCN 888-216-72061000
Home Properties of NYHME877-305-4111 1000
Kilroy Realty Corp.KRC 800-356-2017750
Liberty Property Trust LRY800-944-2214 1000
Mack-Cali Realty Corp.CLI 800-317-44452000
Met-Pro Corp.MPR800-937-54491000
MFA Mortgage InvestmentsMFA 800-842-7629 1000
Microsoft Corp.MSFT800-285-7772 1000
MidSouth BancorpMSL800-526-08011000
National Fuel Gas Co.NFG800-648-81661000
Nationwide Health PropertiesNHP800-524-4458750
Pride International Inc.PDE800-937-5449 1000
Regions Financial Corp.RF800-524-28791000
Rockwell AutomationROK800-204-7800 1000
Rockwell CollinsCOL888-253-45221000
Safeway Inc.SWY877-498-88612500
Sealed Air CorporationSEE800-648-83811000
Skyworks Solutions Inc.SWKS800-937-54491000
Tyco InternationalTYC 800-685-45092500
Valspar Corp.VAL800-356-20171000
Visteon Corp.VC 877-881-59621000
Walt Disney Co.DIS818-553-72001000
XM Satellite RadioXMSR781-575-34001000

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