Buying ge stock direct

Hundreds of companies that trade on the major stock exchanges allow you to buy shares directly from their transfer agents for very little or no money. Years ago, I began buying shares of the Kellogg Company K. According to my year-end statement, I owned For all of these transactions over the years, I have paid no fees to accumulate these shares. Plus, every quarter, when Kellogg pays a dividend to shareholders, my dividend money is automatically used to buy more shares — at no cost to me.

I also buy shares of Pfizer, Inc. PFE every month through their transfer agent, Computershare. Like Kellogg, I get a statement in the mail every month, and I can track and manage my account online. And my quarterly GE dividends are reinvested used to purchase additional shares at no cost.

There are a couple of reasons. But, regardless of whether you make a one-time purchase or sign up to invest monthly, you have no control over the respective trade date. When you use a transfer company to buy shares directly, the transaction may not happen for a couple weeks, and the purchase goes through at whatever the price happens to be at that time. Of course, if your aim is to dollar-cost average your share purchases over a long period of time, this is not a factor.

Is it any wonder people think brokers are the only means for buying equity shares? For the small investor who is ready to buy individual shares of a particular company, a direct stock purchase plan may be the smartest and most thrifty way to do so. Before you invest in the stock of individual companies, be sure you understand the concepts of diversification and asset allocation.

Buying individual stocks is great for some investors, but others are better served with low-cost index funds. GRS is committed to helping our readers save and achieve their financial goals. Savings interest rates may be low, but that is all the more reason to shop for the best rate. Find the highest savings interest rates and CD rates from Synchrony Bank , Ally Bank , and more.

This article is about Investing Basics Investing Money Hacks. Good to see this posted. I have been buying Kelloggs in a DSPP form for almost 25 years starting as a teenager with money I saved during summer jobs and selling pinestraw.

My wife and I have done fairly well concentrating on dividend paying stocks over the years usually five stocks at a time. Not that I expect the author to be a CPA, but should at least fully explore the all impications of an investment before submitting the article. I am all for paying less fees and commission but I like to sell options of long term stock I own adding some extra income every quarter I think sometimes getting from online broker as advantages.

I do not recommend using any Direct Stock Purchase Plans of company. These programs have definite disadvantages. No instantaneous sale of your stock. Most of these stocks are allowed to sell the stock a time period of 3 days. You have no control.

Proceeds of stock sent per check. I could not believe but both BNY Mellon operator of GE Direct Stock Purchase Plan and PG Shareholder services still send all the proceeds from a stock sale via normal mail and not via ACH deposit to bank account!!!

Dividend reinvestment is tax nightmare. When you sell your stock you have to use the price of the stock at the time of stock purchase in order to calculate the profit for your taxes. This means if you have owned stock for 10 years and reinvested 4 times per year quarter dividend payments you have to call the difference from purchasing and sale price over 40 times. Keep away from DRIPs only if you intend to use dividend reinvestment in an IRA account. Only then do you not have to worry about these tax problems.

The bottom lines is that these three issues have made me drop all of my direct stock purchase programs GE and PG. Go to a online broker and you will be better service and avoid these problems. How do I take advantage of purchasing stocks with out a broker AND purchasing them when ever I want?

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That way I can buy and sell whenever it is favorable according to the share price. Any advice would help, thank you. But when I check the sell policy for the stocks I see I lose what I made by saving on the buy. This is a topic that is near and dear to me. I have my own blog dedicated to this topic http: I am a big proponent of participating in direct stock purchase plans DSP and DRIPS.

I have read most of the comments here and investing in this manner is not for everyone. Like someone said, this is all about dollar cost averaging. It is finding the least expensive way to dollar cost average your basis.

I have been participating in this for about 10 years now. Over time I have invested in many companies including Pfizer, Exxon Mobil, Paychex, Schnitzer Steel, Duke Energy, General Mills, etc. From a return perspective it has worked out for me. Maintaining records and determining cost basis can be a challenge.

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I have created a spreadsheet for myself, which I have used the last several years to calculate my tax basis. Someone mentioned that rather than invest small amounts every month, one should save up the small amounts and invest lump sum at the end of several months. For people that do that, 8 out of 10 times they are going to time the market badly and will most likely end up purchasing at a high.

I would rather buy monthly and average out my purchase price. I agree with all the points above, but many times clients have a tough time keeping track of all their shares! Is this a form of fund raising by companies through the issuance of shares…slowly but surely? A particularly good post. If one leaves the money there in the discount brokerage account— usually earning interest— until next month, the investment expense is cut in half.

Or thirds, if you invest only every quarter. Most send quarterly statements when dividends are paid. My children also have custodial accounts. Telling people to buy and hold and blindly diversify is now considered bad advice.

Please stop doing it. The normal benefits of diversification disappeared as many non-correlated asset classes experienced large declines simultaneously.

I love DRIPs Dividend Reinvestment Plans — a very smart way to dollar cost average in to stocks. DRIP Your Way to Investment Success http: I would like to re-emphasize the huge burden of tracking all of the stock information through DRIPS for tax purposes… if you notice on his statement, the company does not do it for you.

All DRIP plans are not created equal.

Look at the fee structure and determine if it ora low cost brokage account would be your lowest holding vehicle. A friend was just talking about a money manager site. Thanks for all the tips! They should be in index fund. There is really no right or wrong answer to which financial planner is best. Personally, I think a one-time fee eliminates many of the exterior motives, for the majority of people.

For example, what if the client just needed help with a rollover. Is that fair if a a planner charges him the same as someone who needs a complete overhaul? As you can see it can get pretty complicated. Spent all my money on Citi stock month ago!!

As mentioned before, these programs give you terrible bid-ask spreads, hiding the true cost of the plan. Have done it for about ten years. At this stage of my life, I reinvest all dividends. I do not do automatic investment monthly. I send in optional payments when I can. DRIPs are applicable ONLY after you fund your IRA and your K if you have a job and your Keogh if you have one and your emergency funds and your college funds, or whatever other normal savings vehicles you have, including mutual funds.

It does take courage though. So like all investing, it is gamble. There was some discussion above about compensation of fee only vs. There are also fee only planners out there who charge a fee based on someone income statement net worth, not their balance sheet or assets under management.

It would be interesting to hear from both sides and how they present themselves, and the get the readers opinions of who is best, or looking out for the investors best interest.

One downside of using direct purchase plans is the resulting influx of statements. You may also have less liquidity. Our ks are invested with mutual funds and index funds and we also have real estate investments. Does anyone have information about this? Glad to finally see DRIPs get some coverage. Excellent way to teach kids about stocks. If you really are buying to hold for the long term like retirement or college savings, then this is a horrible method.

One time transaction fees are nothing compared to the tax consequences of quarterly dividends and long term capital gains over the life of an investment. You would be better off investing in a tax sheltered IRA CD earning 3. This sounds good in theory, but I wonder how it actually works in practice. Not being able to decide the trade date is worrying, but I also saw no mention of trade price. Secondly, and perhaps more worrying, is how you close these positions.

When I sell, do they pick the date and the trade price as well? Of course, I have no interest in buying individual stocks, anyway. This is a great tip for saving money on trading fees. Fee-only advisors are still salesmen.. The problem is aligning their interests with yours. You make more money, he makes more money.. Now here is the real problem.. Lily Ah yes, my evil dopple-ganger. I think it would be hilarious to do so. OT — this made me laugh!

Buying individual stocks is not the best plan for me. The plan is the best way to invest in individual stocks, but are individual stocks the best way for you to invest? Chances are you need to be more diversified. I like this idea in principle, especially for cheap ways to invest in other companies, but it still gives me caution to not control the stock purchase date.

Seen it happen too much. Also the fees if you sell shares through Computershare at least are outrageous compared to a discount broker. Direct-purchase is just that, no middleman. With ShareBuilder, the purchase of additional shares is typically automatically scheduled. With direct-purchase, you MAY have to set that up manually. It depends upon the transfer agent.

In most cases, yes, the transfer agent can handle the sale. Read the fine print though, as there may be exclusions to when transactions are executed and how funds are remitted. If you bought shares directly, you can very easily transfer those shares into a brokerage account, usually for free.

Expect your broker to charge you a nominal fee for transfering shares out, but it can be done. Note, however, that shares generally cannot be transferred in to or out of IRA accounts. Those transactions must usually be done in cash, which means liquidating shares before the transfer.

This may have tax-implications. This looks like a promising idea, but only for those who are looking to invest in a small number of stocks. If one wanted to do this for, say, ten different companies managing it becomes the equivalent of managing ten bank or credit card accounts each with their own monthly statements and tax reporting information.

Managing that could become overwhelming beyond a certain point. They make money from you, by spread in the price that they quote your purchase at. How do you sell shares with this method?

Do you just put in an order with the transfer agent and they execute the trade and send you a check? We bought GE lately too.

If you want to have a diversified collection of stocks then the time factor will add up. Doing this for a handful of stocks is far more work than it is for one index fund. I think it should also come with the caveat that these plans are for taxable investing. To investing in an IRA requires going through a brokerage. I have never been exposed to the concept of buying directly.

When dollar cost averaging this seems to be a great strategy to minimize costs! This is why I prefer Fee-Only Financial Planners. You pay for their professional knowledge — not a salesman. This is great news!

I certainly like the idea of not paying or paying VERY little to buy stock. Thanks for the write-up on these plans. This seems like a low-cost, low-frills way to do it.

General Electric Company: 3 Reasons GE Stock Is a Buy in | InvestorPlace

Yes, most of them have the ability o set it up as a custodial account. We have shres from our employers for the ESPP, but also buy direct through ComputerShare for the kids. Many of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here.

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5 Stock DRIP Investments GONE WRONG

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We want to talk to you if: Direct Stock Purchase Plans: A Better Way to Invest by J. Updated on November 7th, 64 Comments. Buying without the middleman Years ago, I began buying shares of the Kellogg Company K.

Don't miss out - Subscribe to our newsletter for more articles on personal finance. I live in Australia, can i purchase stocks from US market? Also, do you know some companies that offers DPP in Australia?

I am all for paying less fees and commission but I like to sell options of long term stock I own adding some extra income every quarter I think sometimes getting from online broker as advantages loading Any advice would help, thank you loading Hi GRS, Why would a company want to allow direct purchases of its shares?

If that is so…there is a constant, slow, but sure dilution of shares right? Sandy, can you give a step by step of the process with Coca Cola?

Not enough detail, not a very good article. I still no not understand how to go about this. Chett There is really no right or wrong answer to which financial planner is best.

Keep up the posting!! This is all about dollar cost averaging. IF and ONLY IF you have money left over, DRIPs can work. But so is life in general. Have you ever wrote about the difference in the various types of financial planners? The Personal Finance Playbook. Sarah 4 Fee-only advisors are still salesmen.. Thanks for the great tip! I had no idea that companies would let you buy stock this way. I end up paying a higher MER, but I feel it works out because of the way I buy the funds.

Are you talking about something similar to ShareBuilder. Thanks for the info.

Trevor — Striking Up. This will definitely be very attractive for many people who are into investing.