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DRIPs (Dividend Reinvestment Plan) with American Broker

  • 02-03-2017 9:28pm
    #1
    peege
    Registered Users, Registered Users 2 Posts: 70 ✭✭


    I want to buy shares that pay dividends and initiate DRIP.

    I like the idea of compounding and for an investor who has a long time frame eg 20-30 yrs a lot of money can be accumulated (even if the markets crash). Its a good way to prepare for retirement.

    Aside from picking the right companies which is a challenge in itself I need to find a broker that facilitaes DRIP.

    I want to instruct the broker to reinvest any dividends and repurchase proportions of shares.
    You may not earn enough through dividends to buy one full share in one quarter but you will eventuallyaccumulate enough to buy a share.
    All the while you are purchasing fractions of the company until you reach one full share.

    Any european brokers that I find charge quite large fees to initiate DRIPs. However alot of American brokers on the other hand facilitate DRIPs for free.

    I know that you can contact the company whose shares you bought directly and some of them will start a DRIP programme for you but they too are expensive in comparison to American brokers.

    Is it actually possible for me to open an American trading account?

    I do not have an American bank account so how would you transfer money and eventually withdraw it?

    Has anybody any experience with anything I have mentioned above?

    I would appreciate any advice in relation to my plans.
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