I am trying to get into DRIPs are these fees good?

Question

Initial Setup Fee $5.00
Cash Purchase Fee $2.50
Ongoing Automatic Investment Fee $1.00
Purchase Processing Fee (per share) $0.03
Dividend Reinvestment Fee 5% of amount reinvested ($1.00 min/$2.00 max)
Sale Fee $10.00
Sale Processing Fee (per share) $0.07
Maximum Sales Fee N/A

Thanks

Answer 1

Looks high to me. I have two DRIPS (JNJ and HBC). I've had them for over 10 years with no fees at all. I've had others with no fees or very low fees. Yours looks over loaded.

Answer 2

Go to moneypaper.com or sharebuilder.com See what they charge and then see if you can do it on your own without paying there fees. You will still have to pay some kind of brokerage fee to buy your first share then after that there are alot of companies (Common Stock) that charge no fee for ongoing purchases.

Answer 3

I don't know about most brokerages, but DRIP's are free on Etrade. In other words you pay a commission when you buy the stock, but any purchases made with dividends are free. So, no, I don't think those fees are good.

Answer 4

drips are directly from the company, no ongoing fee

call the companies directly and ask for investor relations to answer your questions