What is a DRIP?
DRIP is an acronym for Direct Investment Plan. Hundreds of excellent companies including Coca-Cola, Harley Davidson, Johnson & Johnson, and Exxon Mobile (just to name a few) accept direct investments from shareholders. That means that the shareholder can invest without going through a broker.
While saving broker's fees is an advantage, there's an even bigger advantage to investing through a DRIP. It is because you don't pay fees and commissions that it becomes possible to build holdings steadily over time--instead of risking money on lump-sum investments. In other words, with DRIPs it's easy to dollar-cost average.
Your gift is the first share of stock, which qualifies the new shareholder to enter the DRIP and your gift includes the enrollment in the DRIP.
The lucky gift recipient of your gift will be able to make subsequent investments of as little as $10--or as much as $250,000--to buy additional shares, or even fractions of shares.
The dividends earned can automatically be reinvested to buy more shares. And, if you choose, when the next event rolls around, you can contribute additional funds directly into the account that will be set up with this gift. Every penny of your gift will be used to buy additional shares of stock.
Start today to help your special someone build wealth for tomorrow.