Expert: Steven Taylor - 11/27/2010

Question
I have been looking and unable to find an answer to the following question.  
I am looking to purchase shares at my broker and am then going to use the DRIP plan set up by the company, not the synthetic DRIP from the broker.  My question is if I continue to buy shares later on at my broker (and not through the SPP) will the shares that I buy later be included for my DRIP, or will I have to pay to have them actually registered to my name each time? (opposed to being simply held by me broker in trust for me)
Any insight on the matter would be great.
Thank you


Answer
Justin, it has been my experience that the policy varies by brokerage firm. There are firms out there that do allow the shares purchased through the broker to be included in the company's DRIP without additional cost. But, not all brokers do it, and additionally, not all DRIP plans are available to every broker.

Therefore, you are going to have to ask the specific broker about the availability of the program to them, and which DRIPs they offer.