Benefits of Using FirstShare
Most companies require that investors already own at least one share of its stock before allowing that investor to enroll in its DRiP plan. The First Share Program for DRiP Investors not only helps you acquire that first share, but it also gets you automatically enrolled in the DRiP of your choice. This saves you time and money when compared to other methods of investing with DRiPs
This is our "bread and butter" and is why FirstShare was created. We want to help our members avoid excessive brokerage fees and commissions so that they will have more money to invest in their own futures. The average retail investor -- that's you -- trades stock once a month. If you assume that each trade costs $10, that's $120 per year paid to a stockbroker. If you could avoid those fees and reinvest them into your own portfolio, then in 10 years that $120 could be worth almost $260. Those savings can add up over time.
| FirstShare.com | DirectInvesting.com | |
|---|---|---|
| Annual Member Fee | 19 / $39 | NONE / $129 |
| Owner Fee (p/stock) | NONE | $60 / $30 |
Minimize Risks by Automating Your Investment Plan
The stock market can be volatile; however, DRIP investing allows you to take full advantage of dollar-cost averaging. By investing a small sum at regular intervals, your investment buys more shares of your favorite stock when prices are low, and fewer shares when prices are high.
DRIPs allow you to automate your investment decisions and minimize the risks associated with market timing. With most companies in our program, you will be able to build your portfolio with as little as $10 to $25 per month. While it doesn't seem like much, it certainly will add up over time.
Build a Diversified Portfolio
By making small, monthly investments in several stocks rather than one lump sum investment in one stock, you will be able to build a more diversified portfolio which, if properly implemented, will help to lower your overall risk of investing. DRIPs can help those with limited funds build a diversified portfolio over time.
The following two graphics are examples of portfolios consisting of five stocks each that can be built for only $50 per month or $100 per month using DRIPs.
The portfolios above are not intended as recommendations, but as an illustration of how a diversified portfolio can be built with minimal monthly investments using DRiPs.
