Things You Will Needpen and paper
Step 1Shop for Dividends. To dividend shop, you must evaluate each company. You can use DRIP wizard programs to make the process faster but it's cheaper without the program costs. To evaluate a company quickly, you can go through the websites designed for people shopping for dividends. Just type "dividend shopping" into the search engine to quickly evaluate each company.
Step 2Find a list of DRIPs. You will need a list of DRIPs to identify the best buying opportunities. You can find a list of DRIPs in search engines by searching for "DRIP program list." This step requires some knowledge about DRIPs but otherwise is relatively easy.
Step 3Do fee research. Some company's will charge a small fee for each individual transaction. Research which company's have the lowest fees for their DRIPs. You can do this by going to each website or using a search engine to identify the DRIPs with the lowest fees.
Step 4Research the investment requirements. Depending on the DRIP you can invest a very small amount of money that is required for you to be apart of the program. Usually these company's require that you own a stock in their company. These investment amounts are usually very low but it's still a good idea to research the amount required to invest. Remember, these programs are known for the ability to start with a small amount of money. Most DRIP programs allow you to invest a smaller amount of money over a period of months or years.
Step 5Decide how much you want to invest. Depending on your bankroll, it might be wise to put a larger down-payment on the DRIP program of your choosing. Take into consideration the amount of money you have to invest minus bills and similar living expenses. You should never be willing to invest more than 20% of your bankroll on any single DRIP.