>I've noted a disturbing trend in DRIPS, wags included. >They've jacked up the minimum necessary to enroll while >also jacking up the brokerage fee. Granted, they can't >lose money, but $5 per transaction approaches some of the >electronic brok. fees. Do you all agree? Like to get your >input.
It's only $1.50 for automatic debits. Isn't long term periodic investments the point of DRIP investing? I assume that the higher fees for non automatic debits are to discourage the in and out trader types.
I'm joining the WAG DRIP in January. I plan to invest $50 a month for the next 20 years. Under the current plan fees it will cost about $1.65 per month to do this.
$1.65 on a $50 investment is 3.3%. I think that is a bit high. Although it is difficult to get that % with that small on an investment in an individual stock. For a DRIP I think it is high since the purpose of a DRIP for the company is to offer the stock cheaply to broaden the shareholder base and limit the stock's exposure to the influence of traders; among other benefits . At 3.3% someone with $50 a month and an IRA may find an index fund a better deal.