Are you planning to buy a stock? That’s great, but the problem is that you could only invest a small amount of money each month and you are worried that all the returns will be lost or wiped clean by brokerage fees. You actually have the right to worry because it really is not that easy. But it’s only hard if you don’t know the right ways and the right plan in which you can invest your money in. There are actually ways in which you don’t have to worry if only have a small amount to begin with. You can start by getting direct stock purchase plans [DSPP]. This is a type of investment service in which you can directly purchase a stock from a company directly or with the help of a transfer agent. But not all companies offer a direct stock purchase plan and if they do, they often come with many restrictions on when you can only purchase shares. But if you want to get started in your career as an investor, investing in DSPP is one of the wisest ways to do it. You don’t necessarily have to open a brokerage account if you want to start making an investment. Through DSPP, a company lets you buy stock directly from them without going through a broker. This type of program is offered by transfer agents that represents the companies.
Here is a list of the top 10 DSPPs from some companies in which you can choose from. Remember to choose wisely when it comes to trusting and choosing the people or company in which you will make an investment.
10. Pfizer [DSPP]
Pfizer got the number 10 spot in giving the best DSPP. They also offer other stock options that you can choose from and you can check on your account anytime. You can also check and maintain your account through their transfer agent. Through the same agent, you can do a direct purchase of the stock and when you have already made your purchase, you will be paid directly on your bank account. They have a dividend rate for the first quarter of 2013 that is $0.24 per share.
9. Computershare [DSPP]
This is a transfer agent website that will allow you to get a direct stock purchase from participating companies. Though they are a transfer agent, they have clients that offer the best direct stock purchase plan aside from some the companies that are featured here in the list. By logging-on to their website, it is easier for investors to choose the plan that is best suited for them. Their site is open for all new and experienced investors, as long as you are in legal age and live within the U.S. jurisdiction, you are qualified to purchase a stock from one the participating companies.
8. Novartis [DSPP]
This plan allows you to purchase directly at Novartis Registered share, which they will hold in a Share Deposit Account that is free of charge. They have an uncomplicated and affordable procedure. You can do your purchase through their transfer agent, SIX SAG Ltd and you can check your account through this transfer agent. They have one of the best investment plans; you can make a purchase if you are residing somewhere in France, Switzerland and the UK.
7. The Bank of New York [DSPP]
This direct stock purchase plan is open for shareholders and interested new investors. You can do your purchase though their plan administrator, Computershare. The plan they offer allows investor to have optional cash investments and the sale of their plan shares. You can enroll on their direct stock purchase plan any time. You just have to log-on to their transfer agent’s site that is available 24/7.
6. General Mills [DSPP]
By getting a direct stock purchase plan it will provide the investor purchase stocks conveniently from General Mills. The investor can even increase his or her stock ownership in time by purchasing common stocks and reinvestments. You can do this without the participation of a broker.
5. Caterpillar [DSPP]
You can do the purchase from their transfer agent, BNY Mellon Shareowner Services that offers the investor with Services Program who would like to purchase or sell common stocks from Caterpillar Inc. This is a way for shareholders and first-time investors who would like to make an initial purchase on a Caterpillar Inc. common stock. You can check the information about the stock and the maintenance of your account by logging on the site of their transfer agent.
4. Baidu [DSPP]
Though being a China based Internet search company, they are one of the companies that offer a great direct purchase plan. They have revenue that is almost the same as Google. Even you are residing in the U.S. they make it possible for you to make an investment and purchase Baidu American Depositary Shares directly through the company’s direct purchase plan. They charge a subsequent fee of $5 and a$0.10 per share. You can make an investment as low as $50. You can make your purchase through their transfer agent.
3. Motorola [DSPP]
You can purchase a stock from Motorola through their transfer agent, Computershare Shareowner Services. The agent allows the investors to purchase of sell Motorola Solutions Common stock. This plan is available for present stock holders and first time investors that would like to make an initial purchase of Motorola Solution Stock.
2. McDonalds [DSPP]
By being one of the leading fast food chains in the world today, it is wise to get a direct stock purchase in them. They offer a convenient and effective way of stock purchase and sale. They are encouraging first time investors to make a direct stock purchase. You can enroll on their plan through their transfer agent, Computer share.
1. General Electric [DSPP]
They offer the best options when it comes to a direct stock purchase plan. They give first time investors a chance to make initial purchase of General Electric Company stock in a convenient and economical way. You can do your purchase through their transfer agent, The Bank of New York Mellon Corporation, where you will maintain contact to check and maintain your account.