DRIP stocks, or dividend reinvestment plans, is a great way to build wealth over time. Purchasing a Drip Stock allows you to purchase shares directly from the blue chip company, ELIMINATING broker and transaction fees. In fact, some select companies offers discounts to individual investors that chose to participate in dividend reinvestment plans.
Another added benefit of dividend reinvestment plan stocks investing is that you are allowed to purchase fractional shares. For Example, if the current market price for a stock is $15 and you send in $50 you will be credited 3 and the fractional amount of sales. This benefit, along with automatic reinvestment of dividends are two attributes that investors love about direct investing.