- 1). Decide if you want to invest in one company or in a basket of stocks of many companies. You can reinvest in stocks with either approach. Contact the company your would like to invest in to find out if they have a direct purchase plan or search online to see aggregate listings of direct purchase plans. Various companies offering folio services can be also be found on line.
- 2). Buy a DRIP. You need to already own stock in the company to be able to reinvest your dividends as more stock. If you do not own stock, you can purchase it from the company's Direct Purchase Plan or even buy a single share from a broker and then enroll in the DRIP. The main benefit to these programs is that they are no load, or have low administrative costs.
- 3). Choose a Folio Service program and diversify your investments. The main benefit of these programs is that you can invest within your budget and buy fractional shares of many companies. You have the option to reinvest your dividends.
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