15 DRIPs - The Rest of the Dow, 1 - 3 of 15
For those of you who have joined our program late, we are studying the 30 stocks which make up the Dow Jones Industrial Average or, more simply, the Dow. The average of those 30 stocks provides us a barometer like indicator, reflective of the economic health of the country (US economy). 27 of the 30 companies which make up the Dow offer Dividend Reinvestment Plans which are commonly referred to as DRIPs. DRIPs are a low cost method of making relatively small monthly contributions in a company’s stock with the added feature of having the dividends paid out by those companies automatically used to purchase more stock in the company. To enroll in a DRIP program, some companies, such as the 12 already mentioned, have what is known as Direct Purchase Plans or DPPs where an individual can purchase either via the company or the company’s transfer agent thus bypassing having to use a broker at all. 15 companies in the Dow offer the DRIP option but not a DPP so we’ll have to use a service to purchase our initial share(s) of stock before enrolling in a DRIP. So far, we’ve mentioned using either DirectInvesting.com or the Low Cost Investment Plan via a BetterInvesting.org membership to acquire our initial share(s).
I would now like to delve into the remaining 15 companies in the Dow which offer DRIPs to learn more details of each. The first three we’ll study are the 3M Company (MMM), Alcoa Inc. (AA) and Altria Group, Inc (MO).
3M Company - Minnesota Mining and Manufacturing Co. (MMM) – Current Price – DRIP Plan via MMM site – DRIP info via Wells Fargo – Current Opinion –
(from the company website) - For more than 100 years, people around the world have looked to 3M for products and ideas that solve problems and make their lives easier and better. With more than 55,000 products, 30-plus core technologies and leadership in major markets served worldwide, 3M continues to develop ingenious solutions to meet your varying needs.
Here is a bit of History also copied from the company’s website – “3M was founded in 1902 at the Lake Superior town of Two Harbors, Minn. Five businessmen set out to mine a mineral deposit for grinding-wheel abrasives. But the deposits proved to be of little value, and the new Minnesota Mining and Manufacturing Co. quickly moved to nearby Duluth to focus on sandpaper products.
Years of struggle ensued until the company could master quality production and a supply chain. New investors were attracted to 3M, such as Lucius Ordway, who moved the company to St. Paul in 1910. Early technical and marketing innovations began to produce successes and, in 1916, the company paid its first dividend of 6 cents a share.”
I am pretty much in awe of 3M and, at one time, was seriously considering buying it via the DirectInvesting.com website when the fee price was on special for only $10. Looking back, I wish I would have but, as I recall the share price at that time was over $100 and, I guess, maybe a bit too rich for my blood back then. I have to wonder if, back then, I realized that 3M pays for everything and that the minimum monthly investments can be as little as $10! Maybe in part because I was born in Minnesota or the amazingly easy to absorb low monthly cost of investing in 3M or maybe because 3M is just such a powerhouse of a company but, I am rather certain I will probably end up owning shares of 3M and participating in their DRIP.
I suppose my reasons for buying the company aren’t exactly the most financially rigorous reasons and perhaps a bit emotional but, keep in mind that we are looking at companies which make up the Dow – basically the strongest and most financially sound companies in the world which means, there are far worse things one could spend their money on.
INITIAL SETUP
Initial Purchase – NA – only for DPPs
One Time Set-up Fee $0.00
Shares to Qualify for DRIP = 1
PURCHASE LIMITS
Min $10.00
Max $10,000 per dividend quarter
TRANSACTION FEES
optional Investments by check $0.00
Via automatic ongoing monthly investments $0.00
Dividend Reinvestments $0.00
SALES
Sale of Stock $10.00 + $0.10/share
2) Alcoa Inc. (AA) –
INITIAL SETUP
Initial Purchase – NA – only for DPPs
One Time Set-up Fee $0.00
Shares to Qualify for DRIP = 1
PURCHASE LIMITS
Min $25.00
Max $5,000 per month
TRANSACTION FEES
optional Investments by check (cash) $0.00
Via automatic ongoing monthly investments $1.00
Dividend Reinvestments $0.00
SALES
Sale of Stock $10.00 + $0.12/share
3) Altria Group, Inc. (MO)
This company used to be known as Phillip Morris, which is where the symbol MO comes from. And here is an ALERT – THIS COMPANY HAS A DPP! I had been referring to several sites for initial information and stock1.com is a site with a really nice list of the DOW stocks and had MO listed as a DRIP only company so it is a good thing that I’m doing my own research and checking out both the transfer agents and company websites for information. Another site called the DripAdvisor.com has a nice set up for looking up companies and a worthwhile formatting of information but also appears to be full of badly outdated information. A search for Altria at the DripAdvisor shows no match because the site still has Altria listed under it’s former name of Phillip Morris which changed quite some time ago. When doing a search under the symbol MO we get much outdated information. The transfer agent is listed as First Chicago Trust which was actually bought out by EquiServe which was then bought out by Computershare and the min/max investments allowed and all the fee amounts are wrong …at least compared to the official pdf of Altria’s DSP & DRIP plan as provided by the transfer agent, ComputerShare and dated 4/06.
In all honesty, I think the DripAdvisor site is no longer active because at their home page the latest article provided is of a Weekly Progress Report on their DRIP Portfolio dated 12/05/05 – 12/09/05.
INITIAL SETUP
Initial Purchase – $500 OR $50 /month for 10 months
One Time Set-up Fee $10.00
Shares to Qualify for DRIP = 1
PURCHASE LIMITS
Min $50.00
Max $250,000 per month
TRANSACTION FEES
optional Investments by check or one time debit $5.00 + $0.03/share
Via automatic ongoing monthly investments $2.50 + $0.03/share
Dividend Reinvestments 5% up to max of $3.00 + $0.03/share
SALES
Sale of Stock $15.00 + $0.12/share
MO has a typical purchase schedule of at least twice a week, usually on a Tuesdays and Thursdays which is for optional cash investments by check or One-time online bank debits. Periodic Automatic deductions from a bank account are done twice per month; on the 1st and/or 15th of the month. Sales of MO stock may occur daily.
I would now like to delve into the remaining 15 companies in the Dow which offer DRIPs to learn more details of each. The first three we’ll study are the 3M Company (MMM), Alcoa Inc. (AA) and Altria Group, Inc (MO).
3M Company - Minnesota Mining and Manufacturing Co. (MMM) – Current Price – DRIP Plan via MMM site – DRIP info via Wells Fargo – Current Opinion –
(from the company website) - For more than 100 years, people around the world have looked to 3M for products and ideas that solve problems and make their lives easier and better. With more than 55,000 products, 30-plus core technologies and leadership in major markets served worldwide, 3M continues to develop ingenious solutions to meet your varying needs.
Here is a bit of History also copied from the company’s website – “3M was founded in 1902 at the Lake Superior town of Two Harbors, Minn. Five businessmen set out to mine a mineral deposit for grinding-wheel abrasives. But the deposits proved to be of little value, and the new Minnesota Mining and Manufacturing Co. quickly moved to nearby Duluth to focus on sandpaper products.
Years of struggle ensued until the company could master quality production and a supply chain. New investors were attracted to 3M, such as Lucius Ordway, who moved the company to St. Paul in 1910. Early technical and marketing innovations began to produce successes and, in 1916, the company paid its first dividend of 6 cents a share.”
I am pretty much in awe of 3M and, at one time, was seriously considering buying it via the DirectInvesting.com website when the fee price was on special for only $10. Looking back, I wish I would have but, as I recall the share price at that time was over $100 and, I guess, maybe a bit too rich for my blood back then. I have to wonder if, back then, I realized that 3M pays for everything and that the minimum monthly investments can be as little as $10! Maybe in part because I was born in Minnesota or the amazingly easy to absorb low monthly cost of investing in 3M or maybe because 3M is just such a powerhouse of a company but, I am rather certain I will probably end up owning shares of 3M and participating in their DRIP.
I suppose my reasons for buying the company aren’t exactly the most financially rigorous reasons and perhaps a bit emotional but, keep in mind that we are looking at companies which make up the Dow – basically the strongest and most financially sound companies in the world which means, there are far worse things one could spend their money on.
INITIAL SETUP
Initial Purchase – NA – only for DPPs
One Time Set-up Fee $0.00
Shares to Qualify for DRIP = 1
PURCHASE LIMITS
Min $10.00
Max $10,000 per dividend quarter
TRANSACTION FEES
optional Investments by check $0.00
Via automatic ongoing monthly investments $0.00
Dividend Reinvestments $0.00
SALES
Sale of Stock $10.00 + $0.10/share
2) Alcoa Inc. (AA) –
INITIAL SETUP
Initial Purchase – NA – only for DPPs
One Time Set-up Fee $0.00
Shares to Qualify for DRIP = 1
PURCHASE LIMITS
Min $25.00
Max $5,000 per month
TRANSACTION FEES
optional Investments by check (cash) $0.00
Via automatic ongoing monthly investments $1.00
Dividend Reinvestments $0.00
SALES
Sale of Stock $10.00 + $0.12/share
3) Altria Group, Inc. (MO)
This company used to be known as Phillip Morris, which is where the symbol MO comes from. And here is an ALERT – THIS COMPANY HAS A DPP! I had been referring to several sites for initial information and stock1.com is a site with a really nice list of the DOW stocks and had MO listed as a DRIP only company so it is a good thing that I’m doing my own research and checking out both the transfer agents and company websites for information. Another site called the DripAdvisor.com has a nice set up for looking up companies and a worthwhile formatting of information but also appears to be full of badly outdated information. A search for Altria at the DripAdvisor shows no match because the site still has Altria listed under it’s former name of Phillip Morris which changed quite some time ago. When doing a search under the symbol MO we get much outdated information. The transfer agent is listed as First Chicago Trust which was actually bought out by EquiServe which was then bought out by Computershare and the min/max investments allowed and all the fee amounts are wrong …at least compared to the official pdf of Altria’s DSP & DRIP plan as provided by the transfer agent, ComputerShare and dated 4/06.
In all honesty, I think the DripAdvisor site is no longer active because at their home page the latest article provided is of a Weekly Progress Report on their DRIP Portfolio dated 12/05/05 – 12/09/05.
INITIAL SETUP
Initial Purchase – $500 OR $50 /month for 10 months
One Time Set-up Fee $10.00
Shares to Qualify for DRIP = 1
PURCHASE LIMITS
Min $50.00
Max $250,000 per month
TRANSACTION FEES
optional Investments by check or one time debit $5.00 + $0.03/share
Via automatic ongoing monthly investments $2.50 + $0.03/share
Dividend Reinvestments 5% up to max of $3.00 + $0.03/share
SALES
Sale of Stock $15.00 + $0.12/share
MO has a typical purchase schedule of at least twice a week, usually on a Tuesdays and Thursdays which is for optional cash investments by check or One-time online bank debits. Periodic Automatic deductions from a bank account are done twice per month; on the 1st and/or 15th of the month. Sales of MO stock may occur daily.
posted by Scott at
12:24 PM
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