Does anyone utilize these company sponsored DRIP programs to purchase stock? I just learned of their existence and it seems like a pretty good deal in most cases. For instance, one company I'm interested in American Water Works (AWK) has a sponsered DRIP program:
Enrollment Initial Purchase $100
Minimum purchase $25
Maximum purchase $200,000
Account Setup Fee None
Automatic Investment Fee None
Optional Cash Purchase None
Reinvestment Fee None
Sale Fee $15.00
Fees seem really reasonable, so what's the catch?
Here's another one I'm interested in:
HCP Inc (HCP)
Enrollment Initial Purchase $750
Minimum purchase $100.00
Maximum purchase $10,000.00
Account Setup Fee $10.00
Automatic Investment Fee None
Optional Cash Purchase None
Reinvestment Fee None
Sale Fee $15.00
The plan also offers a discount between 0-5% on the average share price for shares purchased in the plan. Currently, the discount is 1%
This seems like a great deal for long-term stock holders.
Enrollment Initial Purchase $100
Minimum purchase $25
Maximum purchase $200,000
Account Setup Fee None
Automatic Investment Fee None
Optional Cash Purchase None
Reinvestment Fee None
Sale Fee $15.00
Fees seem really reasonable, so what's the catch?
Here's another one I'm interested in:
HCP Inc (HCP)
Enrollment Initial Purchase $750
Minimum purchase $100.00
Maximum purchase $10,000.00
Account Setup Fee $10.00
Automatic Investment Fee None
Optional Cash Purchase None
Reinvestment Fee None
Sale Fee $15.00
The plan also offers a discount between 0-5% on the average share price for shares purchased in the plan. Currently, the discount is 1%
This seems like a great deal for long-term stock holders.