Drips

Dividend Reinvestment Plans, IBM and Exxon Mobil Dividend reinvestment plans or throw aways are a means for home outholders to reinvest their dividends back into a company. Typically DRIPs require shareholders to own at least wholeness share of billet to participate, requiring a token(prenominal) investment on the shareholders part. DRIPs charge little or no earningss to reinvest and if DRPs are make up up via IRA plans the dividends pull in are tax drop off (Investing Through Drips, 2011). Additionally, umteen companies allow shareholders to purchase additional threadbares by their DRIPs at a can to the current market terms (Investing Through Drips, 2011). These discounts commonly range anywhere from one to ecstasy percent. DRIPs provide investors with the index to invest for the future without even sentiment about doing so (Carlson, 2011). IBM offers stockholders a dividend reinvestment plan that is managed through computershare.com, which is a popu lar system for managing investor activity. Via this service, shareholders with a minimum of one share of IBMs stock can purchase additional shares of stock, stigmatize up reoccurring purchases and destine up their dividend reinvestment plan. The initial setup fee for shareholders taking profit of IBMs DRIP is $15.

00 and each dividend reinvestment is aerated a 2% transaction fee charged on the count reinvested, up to a maximum of $3.00 (Investor Centre - IBM, 2011). Participants besides have the cream of reinvesting the full amount of their dividends or a partial amount; however shareholders do not du pe a discount when reinvesting their dividen! ds (Investor Centre - IBM, 2011). IBMs DRP also allows shareholders the option of receiving a funds payout of their dividends earned, providing shareholders with flexibility (Investor Centre - IBM, 2011). IBMs DRIP is describes as a middle of the road investment vehicle as it is a low cost alternative to retentivity and reinvesting in IBM stock (IBM DRIP, 2011). While the plan allows shareholders to make a...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

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