15 DRIPS – The Rest of the Dow 13-17 of 15
Today we take a look at J.P. Morgan Chase & Co (JPM), Johnson & Johnson (JNJ) and Microsoft (MSFT).
J.P. Morgan Chase & Co. (JPM) - DPP & DRIP
Johnson & Johnson (JNJ) - DPP & DRIP
Well, I learned something here about JNJ - I've always had JNJ listed in a Bill Pay section of one of my checking accounts so I could save the $1.00 fee on the automatic purchases but, I've learned that one time purchases done electronically are not subject to the $1.00 fee. So ...I thought I would test this out by making an additional $25 purchase via the EquiServe website (just to confirm). Today is 9/7/06 and the estimated Debit date shown to me upon confirming my purchase is 10/4/2006 and estimated Purchase Date is 10/9/2006! Yikes! about a month away so, I'd have to conclude these single purchases from everyone that purchases like this are made on a single day each month and I must have just missed that day.
Anyway, we'll push this purchase through and maybe in a couple weeks I'll try another test purchase to see if maybe I get the same debit and purchase dates.
Microsoft (MSFT) - DPP & DRIP
Well, here we have the Transfer Agent, Computershare saying we need a minimum of 10 shares to start in UTX's DRIP and DirectInvesting.com says only 1 share. I would be inclined to believe the Transfer Agent over DirectInvesting but am not positive so I've requested Plan Material from UTX to find out for sure.
Several things worth mentioning here. For one thing, I've started linking the companies website to the full name of the company at the top of the table. The symbol, in this case UTX, provides a link to the Investors Relations webpage and in the case of UTX, their Investors Relations page is very interesting as it relates to a conversation I had with a co-worker today.
He made the comment that the DOW was not the place for us to be because it didn't earn enough and since we were considering a relatively shorter investing period of about 20-25 years he figured other, perhaps more aggressive investment vehicles such as a Diversified International type of fund was more appropriate.
Specifically, we were talking about Fidelity's Diviersified International Fund (FDIVX) which both of us have in our 401(k) plan (and are currently quite happy about!)
But, let's compare FDIVX with UTX over the last 10 years
From the Fidelity website (for FDIVX data) and moneycentral.msn.com (for UTX data) we find the Year to Date return for FDIVX at 11.25% and 13.7% for UTX. Next let's look at 1, 3, 5 and 10 year returns for each investment. (data is through 8/31/06)
Verizon Communications (VZ) - DPP & DRIP
What a bunch of CRAP! A $1.00 minimum on Dividend Reinvestments?!
So, when you're starting out and receive dividends on $100 (which at a current dividend yield of 4.56%) comes out to $1.14 for the quarter then Verizon is going to charge you $1.00 of the $1.14? What Crap! Even with $200 invested you'd still be losing close to 1/2 of your dividends on that $1 minimum fee ...Even with $500 invested and a $5.70 dividend that dollar (out of the $5.70) still represents a fee of 17.5% of your dividend - yeah, it's only a dollar but heck ...so many other options to buy where dividend reinvestments are FREE! This is on top of the $1 - $2.50 fee for every purchase you make ...
OK, I'm settled down ...I guess a buck a month to invest via auto investing is pretty decent ... anyway ...
That would be it for the DOW stocks ...so I'll have to change the title of this post to 13-17 of 15!
Next, I'll have to get some tables set up which summarize all this data and improve on some of the links but we'll have something rather nice ...and basically something who's accuracy will far exceed anything else I've been able to find on the internet. Actually, the base information is quite a bit better also.
J.P. Morgan Chase & Co. (JPM) - DPP & DRIP
| Initial Setup | . |
| Initial Purchase | $250 - $250,000 |
| OR per Month Option | $50.00 for 5 months |
| One Time Setup Fee | $15.00 |
| Shares to Qualify for DRIP | 1 |
| . | . |
| Purchase Limits | . |
| Min Purchase | $50.00 |
| Max Purchase | $100,000 /year |
| . | . |
| Transaction Fees | . |
| Optional Cash Investments | $5.00 or $3.50 if debit |
| Automatic Investments | $2.00 |
| Dividend Reinvestments | $0.00 |
| . | . |
| Fees per Share | . |
| From a Purchase (including initial) | $0.03/share |
| From a Sale | $0.05/share |
| . | . |
| Sales Fee | $15.00 |
| . | . |
| Plan Brochure | . |
Transfer Agent ---> | Mellon Investor Service |
Johnson & Johnson (JNJ) - DPP & DRIP
| Initial Setup | . |
| Initial Purchase | NA - DRIP Only |
| One Time Setup Fee | $10.00 |
| Shares to Qualify for DRIP | 1 |
| . | . |
| Purchase Limits | . |
| Min Purchase | $25.00 |
| Max Purchase | $50,000 /year |
| . | . |
| Transaction Fees | . |
| Optional Cash & One time Bank Debit | $0.00 |
| Automatic Investments | $1.00 |
| Dividend Reinvestments | $0.00 |
| . | . |
| Fees per Share | . |
| From a Purchase | $0.00/share |
| From a Sale | $0.12/share |
| . | . |
| Sales Fee | $15.00 |
| . | . |
| Plan Brochure - available at website | . |
| Transfer Agent Website | EquiSerive.com |
Well, I learned something here about JNJ - I've always had JNJ listed in a Bill Pay section of one of my checking accounts so I could save the $1.00 fee on the automatic purchases but, I've learned that one time purchases done electronically are not subject to the $1.00 fee. So ...I thought I would test this out by making an additional $25 purchase via the EquiServe website (just to confirm). Today is 9/7/06 and the estimated Debit date shown to me upon confirming my purchase is 10/4/2006 and estimated Purchase Date is 10/9/2006! Yikes! about a month away so, I'd have to conclude these single purchases from everyone that purchases like this are made on a single day each month and I must have just missed that day.
Anyway, we'll push this purchase through and maybe in a couple weeks I'll try another test purchase to see if maybe I get the same debit and purchase dates.
Microsoft (MSFT) - DPP & DRIP
| Initial Setup | . |
| Initial Purchase | $1,000 |
| OR Per Month Option | $50 |
| One Time Setup Fee | $10 |
| Shares to Qualify for DRIP | 1 |
| . | . |
| Purchase Limits | . |
| Min Purchase | $50.00 |
| Max Purchase | unlimited |
| . | . |
| Transaction Fees | . |
| Optional Cash Investments | $5.00 |
| Automatic Investments | $2.00 |
| Dividend Reinvestments | 5% to $3.00 max |
| . | . |
| Fees per Share | . |
| From a Purchase | $0.06/share |
| From a Sale | $0.12/share |
| . | . |
| Sales Fee | $15.00 |
| . | . |
| Plan Brochure | . |
| Transfer Agent | Mellon Investor Services |
Here's another company that's listed on other sites as a DRIP only site but when we take the time to look we find it also offers a Direct Purchase Plan. I can't say I'm crazy about all their fees though.
What the heck, there's only two more companies to look at and since I now have a template to use for formating the information I find, let's knock out the last two companies in the DOW.
United Technologies Corporation (UTX) - DPP & DRIP
| Initial Setup | . |
| Initial Purchase | $1,000 |
| OR Per Month Option | $50 |
| One Time Setup Fee | $10 |
| Shares to Qualify for DRIP | 10 |
| . | . |
| Purchase Limits | . |
| Min Purchase | $100 |
| Max Purchase | $120,000/? |
| . | . |
| Transaction Fees | . |
| Optional Cash Investments | $0.00 |
| Automatic Investments | NA |
| Dividend Reinvestments | $0.00 max |
| . | . |
| Fees per Share | . |
| From a Purchase | $0.00/share |
| From a Sale | $0.00/share |
| . | . |
| Sales Fee | $10.00 |
| . | . |
| Plan Brochure by Mail | . |
Transfer Agent Website ---> | EquiServe.com |
Well, here we have the Transfer Agent, Computershare saying we need a minimum of 10 shares to start in UTX's DRIP and DirectInvesting.com says only 1 share. I would be inclined to believe the Transfer Agent over DirectInvesting but am not positive so I've requested Plan Material from UTX to find out for sure.
Several things worth mentioning here. For one thing, I've started linking the companies website to the full name of the company at the top of the table. The symbol, in this case UTX, provides a link to the Investors Relations webpage and in the case of UTX, their Investors Relations page is very interesting as it relates to a conversation I had with a co-worker today.
He made the comment that the DOW was not the place for us to be because it didn't earn enough and since we were considering a relatively shorter investing period of about 20-25 years he figured other, perhaps more aggressive investment vehicles such as a Diversified International type of fund was more appropriate.
Specifically, we were talking about Fidelity's Diviersified International Fund (FDIVX) which both of us have in our 401(k) plan (and are currently quite happy about!)
But, let's compare FDIVX with UTX over the last 10 years
From the Fidelity website (for FDIVX data) and moneycentral.msn.com (for UTX data) we find the Year to Date return for FDIVX at 11.25% and 13.7% for UTX. Next let's look at 1, 3, 5 and 10 year returns for each investment. (data is through 8/31/06)
Average Annual Total Returns (%)
| . | FDIVX | UTX |
| 1year | 21.50 | 25.4 |
| 3 year | 22.96 | 18.9 |
| 5 year | 14.84 | 15.5 |
| 10 year | 13.17 | 17.8 |
| Initial Setup | . |
| Initial Purchase | $500 |
| OR Per Month Option | $100 |
| One Time Setup Fee | $5 |
| Shares to Qualify for DRIP | 1 |
| . | . |
| Purchase Limits | . |
| Min Purchase | $50 |
| Max Purchase | $200,000 |
| . | . |
| Transaction Fees | . |
| Optional Cash (check or Internet) | $2.50 |
| Automatic Investments | $1.00 |
| Dividend Reinvestments | 5% - $1 min/$2 max |
| . | . |
| Fees per Share | . |
| From a Purchase | $0.03/share |
| From a Sale | $0.07/share |
| . | . |
| Sales Fee | $10.00 |
| . | . |
| Plan Brochure, go to EquiServe.com | Prospectus By Mail |
| Transfer Agent Website | EquiServe.com |
What a bunch of CRAP! A $1.00 minimum on Dividend Reinvestments?!
So, when you're starting out and receive dividends on $100 (which at a current dividend yield of 4.56%) comes out to $1.14 for the quarter then Verizon is going to charge you $1.00 of the $1.14? What Crap! Even with $200 invested you'd still be losing close to 1/2 of your dividends on that $1 minimum fee ...Even with $500 invested and a $5.70 dividend that dollar (out of the $5.70) still represents a fee of 17.5% of your dividend - yeah, it's only a dollar but heck ...so many other options to buy where dividend reinvestments are FREE! This is on top of the $1 - $2.50 fee for every purchase you make ...
OK, I'm settled down ...I guess a buck a month to invest via auto investing is pretty decent ... anyway ...
That would be it for the DOW stocks ...so I'll have to change the title of this post to 13-17 of 15!
Next, I'll have to get some tables set up which summarize all this data and improve on some of the links but we'll have something rather nice ...and basically something who's accuracy will far exceed anything else I've been able to find on the internet. Actually, the base information is quite a bit better also.
posted by Scott at
10:39 PM
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