How to Set up Dividend Reinvestment Plan?
1. Choose a Company: Decide which company’s stock you want to invest in through a DRIP. Look for companies that offer DRIPs, and ensure that you meet any minimum requirements they may have.
2. Contact the Transfer Agent or Brokerage Firm: Reach out to the transfer agent or brokerage firm responsible for managing the DRIP. You can usually find their contact information on the company’s website or through your brokerage account.
3. Complete Enrolment Forms: Obtain the necessary enrolment forms from the transfer agent or brokerage firm. These forms will ask for basic personal information, account details, and instructions for dividend reinvestment.
4. Specify Your Preferences: Decide how you want your dividends to be reinvested. You may choose to reinvest all dividends, a specific percentage, or a fixed dollar amount. You can also decide whether to purchase full shares or fractional shares.
5. Submit Your Forms: Fill out the enrolment forms completely and accurately, then submit them to the transfer agent or brokerage firm according to their instructions. Make sure to double-check everything before sending it in.
6. Wait for Confirmation: After submitting your forms, wait for confirmation that you’ve been enrolled in the DRIP. This confirmation may come via email, mail, or through your brokerage account.
7. Monitor Your Investment: Once you’re enrolled, keep an eye on your DRIP activity. You’ll see your dividends automatically reinvested into additional shares of the company’s stock. You can track your investment performance through your brokerage account or statements.
8. Review and Adjust as Needed: Periodically review your DRIP holdings and make any necessary adjustments to your preferences. You can change your reinvestment options or even sell shares if you need to.
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