Drips

Dividend Reinvestment Plans, IBM and Exxon Mobil Dividend reinvestment plans or throw aways are a means for nail outholders to reinvest their dividends back into a company. Typically DRIPs require shareholders to own at least wholeness share of memory to participate, requiring a marginal investment on the shareholders part. DRIPs charge little or no earningss to reinvest and if DRPs are make up up via IRA plans the dividends gain are tax drop off (Investing Through Drips, 2011). Additionally, many a(prenominal) companies allow shareholders to purchase additional declensions by their DRIPs at a usher out to the current market terms (Investing Through Drips, 2011). These discounts ordinarily range anywhere from one to ecstasy percent. DRIPs provide investors with the capacity to invest for the future without even sentiment about doing so (Carlson, 2011). IBM offers stockholders a dividend reinvestment plan that is managed through computershare.com, which is a popular manner for managing investor activity. Via this service, shareholders with a minimum of one share of IBMs stock can purchase additional shares of stock, stigmatize up reoccurring purchases and train up their dividend reinvestment plan. The initial setup fee for shareholders taking reinforcement of IBMs DRIP is $15.

00 and each dividend reinvestment is aerated a 2% transaction fee charged on the fall reinvested, up to a maximum of $3.00 (Investor Centre - IBM, 2011). Participants besides have the plectrum of reinvesting the full amount of their dividends or a partial amount; however shareh olders do not dupe a discount when reinvest! ing their dividends (Investor Centre - IBM, 2011). IBMs DRP also allows shareholders the option of receiving a property payout of their dividends earned, providing shareholders with flexibility (Investor Centre - IBM, 2011). IBMs DRIP is describes as a middle of the road investment vehicle as it is a low cost alternative to retentivity and reinvesting in IBM stock (IBM DRIP, 2011). While the plan allows shareholders to make a...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

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