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Buying Your First Share


Purchasing the first share of a company's stock is often the biggest obstacle to DRIP investing. The most common method of purchasing stock, through a brokerage house, has for many years been the least likely avenue for an investor seeking to buy just one share -- full-service brokers often don't want the hassle involved in selling and issuing a certificate for a single share of stock.

In recent years, though, commissions at deep-discount brokers have dropped as low as $12 a trade. Other fees may apply, such as charges to have stock certificates issued to the owner rather than having the broker hold them in street name. Using a deep-discount broker, investors may make a small odd-lot purchase of just a few shares, and then enroll in a corporation's DRIP. More on this later.

However, most brokers still require a minimum of $1,000 (and often more) to establish an account. For those who do not have enough capital to open an account at a deep discount brokerage firm, or who wish to start off with a smaller initial investment, there are several options for the savvy investor to acquire the single share that is required to establish a DRIP account:

  • Buying A Single Share Direct from the Company
  • National Association of Investors Corporation
  • First Share
  • From a Single Share From a Friend
  • Buying a Single Share From a Broker