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DRIPs And Direct Purchase Plans
DRIP – Dividend Reinvestment Plan
Some companies offer a direct stock purchase plan (DSPP) where you can buy directly from them.
Company DRIPs and DSPPs may have fees involved that are higher than a broker, do your research before purchasing direct instead of through a broker.
Some companies allow you to reinvest your dividends at a discount to the current market price.
Example: Healthcare Realty Trust (NYSE: HR) allows you to reinvest dividends at a 5% discount (at the time of book publication).
Look at all costs involved before making a decision.
Jeremy Silva
Jeremy Silva lives near San Francisco with his wife and son. He is a writer, blogger, and personal investor. He is passionate about education, personal development, project management, and investing. His blog has over 100 book summaries on many topics including investing, self-help, and business. You can click on the link to read some interesting book summaries on Jeremy’s website (https://jsilva.blog/book-summaries/).