Stock Strategies
Buying Straight From the Source:
AAII’s 2008 Direct Purchase Plan Guide
By Maria Crawford Scott and Cara Scatizzi
Want a simple, low-cost way
to invest in a firm?
One approach is to go straight to
the source. Currently, over 430 companies in the U.S. offer direct purchase plans,
allowing you to buy shares directly from
the company without a broker. In addition,
a growing number of foreign firms also offer direct
purchase plans through their ADR programs (for more on
these plans, see page 20).
Direct purchase plans are a form of dividend reinvestment plan, but in a traditional dividend reinvestment plan
you must first enroll in the plan in order to participate, which
means buying your initial shares through a broker.
Direct purchase plans allow you to completely bypass
brokers. And they offer a low-cost means of investing directly
in a company for even very modest
sums of money.
The Dividend Advantage
The attraction of dividend-paying
stocks has increased since dividends started
to receive preferential tax treatment in 2003, and it
should continue now that that treatment will be extended
through 2010. Reinvesting dividends allows you to build up
your position in a company and keeps your money working
for you over time. But keeping costs low is important, which
is one of the attractions of a direct purchase plan.
Of course, a number of major discount brokerage firms
offer their own dividend reinvestment plans, which allow you
to reinvest the dividends of the stocks you own through the
(continued on page 18)
More on Dividend Reinvestment Plans
For a complete description of how direct purchase
and dividend reinvestment plans work, go to the on-line
version of this article at www.aaii.com.
The on-line version of this article also contains
a hyperlinked table of the direct purchase plan firms.
Along with the information you see here in Table 1,
ticker symbols are linked to our research area where
you can view a current stock quote, stock price chart,
and other financial data including earnings estimates for
each company. There is also a link from each company
to its plan administrator in cases where you can purchase
initial shares on-line; click on the X in the column labeled
“Direct Buy Web Site” to access this capability. In addi-
June 2008
tion, you can download the table to your computer as an
Excel spreadsheet.
The information for the listings in this article was
provided by dripdatabase.com. The soon-to-be completed
Web site will provide a complete listing of companies offering direct purchase and dividend reinvestment plans,
including the features of each plan, stock ratings and
contact information.
The Web site is published by Simplisoft, a Beaverton, Oregon-based firm that specializes in tax and
accounting software specifically designed for dividend
reinvestment plan investors. For more information, go to
www.dripwizard.com.
13
Table 1. Firms With Direct Purchase Plans
Telephone
Direct
Minimum
($)
Company (Exchange: Ticker)
800-432-0140
800-278-4353
800-929-6782
800-446-2617
800-235-2667
800-633-4236
800-278-4353
877-978-7778
877-978-7778
800-535-3056
800-356-5343
800-355-5191
800-442-0077
800-278-4353
800-255-2237
800-328-6955
800-463-5911
877-978-7778
866-337-4999
800-278-4353
877-978-7778
312-360-5260
877-978-7778
800-278-4353
800-278-4353
800-446-2617
800-988-5291
781-575-2879
800-524-4458
866-857-2223
800-278-4353
800-278-4353
312-360-5386
866-517-4570
800-622-6757
800-351-7221
800-278-4353
877-498-8861
877-978-7778
800-642-7365
800-278-4353
800-642-9855
877-978-7778
800-568-3476
781-575-2879
800-278-4353
877-978-7778
800-278-4353
781-575-2879
781-575-2879
Acuity Brands (N: AYI)
500
Adams Express Co. (N: ADX)
500
ADC Telecommunications (M: ADCT)
500
Aetna (N: AET)
500
AFLAC Inc. (N: AFL)
1,000
AGL Resources (N: ATG)
250
Air Products & Chemicals (N: APD)
500
Alaska Communic’s Sys (M: ALSK)
500
Allegheny Technologies (N: ATI)
250
ALLETE (N: ALE)
250
Alliant Energy Corp. (N: LNT)
250
Allstate Corp. (N: ALL)
500
Altria Group (N: MO)
500
AMCOL International Corp. (N: ACO)
250
Ameren Corp. (N: AEE)
250
American Electric Power (N: AEP)
250
American Express (N: AXP)
1,000
American States Water Co. (N: AWR)
500
Ameriprise Financial (N: AMP)
1,000
Ametek Inc. (N: AME)
250
Anadarko Petroleum Corp. (N: APC) 1,000
Andersons Inc. (The) (M: ANDE)
250
Annaly Capital Management (N: NLY) 1,000
Anthracite Capital Inc. (N: AHR)
250
Anworth Mortgage Asset (N: ANH)
1,000
AON Corp. (N: AOC)
250
Applied Industrial Technologies (N: AIT) 250
Aqua American (N: WTR)
500
Arbitron Inc. (N: ARB)
200
Arch Chemicals (N: ARJ)
500
Arch Coal Inc. (N: ACI)
250
Arrow Financial Corp. (M: AROW)
300
Arthur J. Gallagher & Co. (N: AJG)
250
ArvinMeritor (N: ARM)
500
Ashland (N: ASH)
500
AT&T (N: T)
500
Atmos Energy Corp. (N: ATO)
1,250
Avery Dennison Corp. (N: AVY)
500
Avis Budget Group (N: CAR)
250
Avista (N: AVA)
250
Badger Meter Inc. (A: BMI)
100
Bank of America Corp. (N: BAC)
1,000
Bank of New York Co. (N: BK)
1,000
Bank of South Carolina Corp. (M: BKSC) 250
Banner Corporation (M: BANR)
250
Bar Harbor Bankshares (A: BHB)
250
Barnes Group (N: B)
250
Beazer Homes USA (N: BZH)
250
Becton, Dickinson and Co. (N: BDX)
250
Best Buy Co. (N: BBY)
500
Telephone
Company (Exchange: Ticker)
800-524-4458
800-468-9716
800-446-2617
800-272-7675
800-446-2617
877-978-7778
877-978-7778
781-575-2879
800-524-4458
877-978-7778
877-978-7778
800-278-4353
800-278-4353
877-978-7778
800-519-3111
800-468-9716
800-524-4458
800-446-2617
800-432-8224
800-278-4353
800-278-4353
800-446-2617
866-662-3945
800-278-4353
800-884-4225
800-278-4353
800-524-4458
800-278-4353
800-278-4353
800-278-4353
877-978-7778
877-978-7778
877-978-7778
866-595-1717
800-231-6406
800-468-9716
800-278-4353
800-428-9578
800-278-4353
800-261-0598
877-498-8865
877-978-7778
877-978-7778
800-278-4353
877-785-9659
800-278-4353
781-575-2726
800-756-8700
866-897-1807
800-278-4353
Direct
Minimum
($)
BioMed Realty Trust (N: BMR)
100
Black Hills Corp. (N: BKH)
250
Blyth (N: BTH)
250
Bob Evans Farms (M: BOBE)
100
Borders Group (N: BGP)
500
BorgWarner Automotive (N: BWA)
500
Boston Beer Co. (N: SAM)
500
Boston Properties (N: BXP)
250
Bowne & Co. (N: BNE)
500
BRE Properties (N: BRE)
500
Bristol-Myers Squibb Co. (N: BMY)
250
Brooke Corp. (M: BXXX)
250
Brookeline Bancorp (M: BRKL)
1,000
Brown Shoe Company (N: BWS)
250
Buckeye Partners (N: BPL)
250
Building Materials Holding Corp. (N: BLG) 250
Burger King Holdings, Inc. (N: BKC)
250
C.R. Bard (N: BCR)
250
Calamos Asset Management (M: CLMS) 200
California Water Serv Co. (N: CWT)
250
Camden National Corp. (M: CAC)
250
Campbell Soup Co. (N: CPB)
500
Capital Trust (N: CT)
1,000
CapitalSource Inc. (N: CSE)
100
Capitol Bancorp Ltd. (N: CBC)
250
CapLease, Inc. (N: LSE)
100
Caraustar Industries (M: CSAR)
250
Carpenter Technology Corp. (N: CRS) 250
Carrollton Bancorp (M: CRRB)
250
Carver Bancorp (M: CARV)
250
Cascade Financial Corp. (M: CASB)
250
Cash America Int’l (N: CSH)
250
Caterpillar (N: CAT)
250
CBS Corp. (N: CBS)
250
Centerpoint Energy (N: CNP)
250
Central Pacific Financial Corp. (N: CPF) 250
Central Vermont Public Serv (N: CV)
250
CH Energy Group (N: CHG)
100
Chase Corp. (A: CCF)
250
Chemical Financial (M: CHFC)
50
Chesapeake Utilities Corp. (N: CPK) 1,000
ChevronTexaco Corp. (N: CVX)
250
CIGNA Corp. (N: CI)
250
Citizens & Northern Corp. (M: CZNC)
250
Citizens Inc. (N: CIA)
250
Citizens Republic Bancorp (M: CRBC)
100
Clorox Company, The (N: CLX)
250
Colgate Palmolive (N: CL)
500
Colonial Properties Trust (N: CLP)
200
Columbus McKinnon (M: CMCO)
250
Exchange Key: N = New York Stock Exchange; A = American Stock Exchange; M = Nasdaq; O = Over the Counter
14
AAII Journal
Stock Strategies
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
Direct
Minimum
($)
Company (Exchange: Ticker)
800-278-4353
800-426-5523
877-978-7778
888-294-8217
877-978-7778
706-692-2424
800-521-5571
800-278-4353
800-524-4448
877-602-7596
866-485-0444
800-268-7369
866-582-1370
800-278-4353
800-432-0140
800-278-4353
800-552-4034
877-272-9616
877-978-7778
866-388-8558
800-488-3853
800-278-4353
877-978-7778
800-278-4353
800-278-4353
800-253-6057
800-278-4353
877-978-7778
800-347-8625
800-278-4353
800-250-5016
800-833-8699
877-978-7778
888-764-5603
877-978-7778
877-978-7778
800-884-4225
866-665-2279
800-246-5761
800-733-5001
312-360-5354
877-978-7778
800-252-1800
877-978-7778
800-910-8277
877-978-7778
800-278-4353
800-446-2617
781-575-2879
800-622-6757
Community Bank System (N: CBU)
250
Community Central Bank (M: CCBD)
250
ConocoPhillips (N: COP)
250
Cooper Tire & Rubber Co. (N: CTB)
250
Costco Wholesale (M: COST)
250
Crescent Banking Co. (M: CSNT)
500
CSX Corp. (N: CSX)
500
Curtiss-Wright Corp. (N: CW)
250
CVS Corp. (N: CVS)
100
Darden Restaurants (N: DRI)
1,000
DCT Industrial Trust (N: DCT)
250
Deere & Co. (N: DE)
500
Del Monte Foods Co. (N: DLM)
200
Dell Inc. (M: DELL)
250
Diebold (N: DBD)
500
Dime Community Bancshares (M: DCOM) 300
Dominion Resources (N: D)
350
Domino’s Pizza Inc. (N: DPZ)
65
Dover Corp. (N: DOV)
500
DTE Energy Co. (N: DTE)
250
Duke Energy Corp. (N: DUK)
250
Duke Realty Corp. (N: DRE)
250
E.W. Scripps Co., The (N: SSP)
250
Eastern Co. (A: EML)
250
Eastman Chemical Co. (N: EMN)
250
Eastman Kodak Co. (N: EK)
150
Easylink Services Corp. (M: ESIC)
250
Eaton Corporation (N: ETN)
100
Edison International (N: EIX)
1,000
Education Realty Trust (N: EDR)
300
Electronic Data Systems Corp. (N: EDS) 250
Eli Lily and Co. (N: LLY)
1,000
Emerson Electric Co. (N: EMR)
250
Energen Corp. (N: EGN)
250
Energy East Corp. (N: EAS)
25
Entergy Corp. (N: ETR)
1,000
Entertainment Properties Trust (N: EPR) 200
Equifax (N: EFX)
500
Equity Lifestyle Properties (N: ELS)
1,000
Equity Residential (N: EQR)
250
Essex Property Trust (N: ESS)
100
Estee Lauder Companies (N: EL)
250
Exxon Mobil Corp. (N: XOM)
250
FairPoint Communications (N: FRP)
500
Fannie Mae (N: FNM)
250
FBL Financial Group (N: FFG)
250
Federal Realty Investment Trust (N: FRT) 250
FedEx Corp. (N: FDX)
1,000
Ferrellgas Partners (N: FGP)
1,000
Ferro Corp. (N: FOE)
10
Telephone
Company (Exchange: Ticker)
800-524-4458
888-294-8285
800-401-1957
800-524-4458
800-278-4353
800-736-3402
800-368-5948
781-575-2879
800-278-4353
781-575-2879
800-278-4353
800-524-4448
800-786-2543
877-978-7778
800-524-4458
781-575-2879
800-278-4353
800-278-4353
800-738-4931
800-317-4445
877-978-7778
800-278-4353
781-575-2879
877-978-7778
877-978-7778
312-588-4990
800-426-5523
866-360-5339
866-672-5841
800-524-4458
877-978-7778
877-978-7778
877-978-7778
800-716-3607
800-278-4353
800-577-0177
877-978-7778
877-978-7778
800-278-4353
888-426-6700
800-565-7890
866-870-9360
800-756-8600
800-432-0140
800-278-4353
877-978-7778
800-278-4353
888-269-2377
800-278-4353
800-298-0146
Direct
Minimum
($)
Fidelity Southern Corp. (M: LION)
1,000
Fifth Third Bancorp (M: FITB)
250
First American Corp. (N: FAF)
250
First Commonwealth Fin’l (N: FCF)
500
First Niagara Financial (M: FNFG)
250
FirstEnergy (N: FE)
250
FNB Corp. (N: FNB)
1,000
Ford Motor Co. (N: F)
1,000
Franklin Street Properties (A: FSP)
250
Freddie Mac (N: FRE)
250
Friedman Billings Ramsey Group (N: FBR) 250
GenCorp (N: GY)
500
General Electric Co. (N: GE)
250
General Growth Properties (N: GGP)
200
Genworth Financial (N: GNW)
200
German American Bancorp (M: GABC) 100
Gevity HR, Inc. (M: GVHR)
25
Glacier Bancorp (M: GBCI)
250
Glimcher Realty Trust (N: GRT)
100
Goodyear Tire & Rubber Co. (N: GT)
250
Gray Television (N: GTN)
250
Great Atlantic & Pacific (N: GAP)
250
Great Plains Energy (N: GXP)
500
H.J. Heinz Co. (N: HNZ)
250
Halliburton (N: HAL)
500
Hanesbrand Inc. (N: HBI)
250
Hanover Capital Mrtg. Hldgs. (A: HCM) 250
Harley-Davidson (N: HOG)
500
Hawaiian Electric Industries (N: HE)
250
HCP, Inc. (N: HCP)
750
Health Care REIT (N: HCN)
1,000
Hercules (N: HPC)
250
Hershey Co. (N: HSY)
250
Hill-Rom Holdings (N: HRC)
250
Holly Corp. (N: HOC)
250
Home Depot (N: HD)
500
Home Properties (N: HME)
1,000
Hudson City Bancorp (M: HCBK)
250
Hythiam, Inc. (M: HYTM)
250
IBM (N: IBM)
500
IdaCorp (N: IDA)
200
Idaho Independent Bank (O: IIBK)
150
Idearc Inc. (N: IAR)
500
Imation Corp. (N: IMN)
500
Independent Bank Corp. MI (M: IBCP) 250
IndyMac Bancorp (N: IMB)
250
Infinity Property & Casualty (M: IPCC) 250
Insignia Systems (M: ISIG)
200
Integrys Energy Group, Inc. (N: TEG) 100
Intel Corp. (M: INTC)
250
(continued on next page)
June 2008
15
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
Direct
Minimum
($)
Company (Exchange: Ticker)
877-978-7778
800-278-4353
888-269-2377
781-575-2879
800-254-2823
877-978-7778
800-456-1169
877-978-7778
800-278-4353
877-602-7397
877-978-7778
800-278-4353
877-978-7778
800-622-6757
877-910-5385
877-978-7778
800-539-7216
877-978-7778
866-557-8695
800-246-5761
469-633-0101
866-655-7238
800-524-4458
800-824-5707
800-524-4458
800-944-2214
866-875-7975
877-978-7778
877-498-8861
866-828-8170
877-498-8861
800-468-9716
877 282-1174
312-588-4990
800-278-4353
201-324-1644
800-317-4445
866-337-3311
800-278-4353
800-893-4814
888-843-5542
877-978-7778
800-457-8968
800-813-2847
888-909-9922
800-278-4353
800-468-9716
800-446-2617
800-621-7825
888-201-5538
International Paper Co. (N: IP)
500
Intersil Corp. (M: ISIL)
250
Invesco Ltd. (N: IVZ)
200
iStar Financial (N: SFI)
100
ITT Industries (N: ITT)
500
J.C. Penney Co. (N: JCP)
250
J.M. Smucker Company (N: SJM)
250
J.P. Morgan Chase & Co. (N: JPM)
250
Jeffersonville Bancorp. (M: JFBC)
250
Johnson Controls (N: JCI)
250
Jones Lang LaSalle Inc. (N: JLL)
250
JPS Industries Inc. (O: JPST)
250
Kaman Corp. (M: KAMN)
250
Keithley Instruments, Inc. (N: KEI)
250
Kellogg Company (N: K)
50
Kelly Services (M: KELYA)
250
KeyCorp (N: KEY)
250
Kilroy Realty Corp. (N: KRC)
750
Kimco Realty Corp. (N: KIM)
100
Kite Realty Group Trust (N: KRG)
250
KMG Chemicals Inc. (M: KMGB)
200
Kraft Foods (N: KFT)
500
Lear Corp. (N: LEA)
250
Lehman Brothers Holdings (N: LEH)
500
Libbey (N: LBY)
100
Liberty Property Trust (N: LRY)
1,000
Limited Brands Inc. (N: LTD)
200
Lincoln National Corp. (N: LNC)
500
Lion Inc. (O: LINN)
150
Liz Claiborne (N: LIZ)
500
Lockheed Martin Corp. (N: LMT)
250
Longs Drug Stores Corp. (N: LDG)
500
Lowe’s Companies (N: LOW)
250
LSI Industries, Inc. (M: LYTS)
250
Lubrizol Corp. (N: LZ)
250
Macerich Co. (N: MAC)
250
Mack-Cali Realty Corp. (N: CLI)
2,000
Macy’s, Inc. (N: M)
500
Magellan Petroleum Corp. (M: MPET)
250
Maine & Maritimes Corp. (A: MAM)
250
Marathon Oil Corp. (N: MRO)
500
Marriott Int’l (N: MAR)
350
Marsh & McLennan Companies (N: MMC)500
Massey Energy Corp. (N: MEE)
250
Mattel (N: MAT)
500
MBT Financial Corp. (M: MBTF)
250
McCormick & Co. (N: MKC)
250
McDermott International (N: MDR)
500
McDonald’s Corp. (N: MCD)
500
McGraw-Hill Companies (N: MHP)
500
Telephone
Company (Exchange: Ticker)
877-536-3553
800-246-5761
866-455-3115
888-648-8154
800-522-9114
800-278-4353
877-978-7778
800-356-6423
800-278-4353
877-978-7778
800-278-4353
877-978-7778
800-278-4353
800-468-9716
312-360-5315
877-978-7778
877-978-7778
877-978-7778
800-648-8166
800-278-4353
877-978-7778
800-524-4458
877-978-7778
866-293-6077
800-278-4353
800-633-4236
312-588-4990
800-468-9716
800-756-8200
800-999-7269
800-278-4353
800-278-4353
800-278-4353
800-338-8446
877-366-6442
877-978-7778
877-978-7778
800-677-1749
800-468-9716
781-575-2726
877-978-7778
800-524-4458
866-235-0232
312-588-4990
800-432-0140
877-978-7778
800-468-9716
866-621-2787
800-278-4353
800-278-4353
Direct
Minimum
($)
MDU Resources Group (N: MDU)
250
Meadowbrook Insurance (N: MIG)
250
MeadWestvaco Corp. (N: MWV)
500
Medtronic (N: MDT)
250
Merck &Co. (N: MRK)
350
Met-Pro Corp. (N: MPR)
1,000
MFA Mortgage Investments (N: MFA) 1,000
MGE Energy (M: MGEE)
250
MHI Hospitality Corp. (M: MDH)
250
Microsoft Corp. (M: MSFT)
1,000
Mid-Amer Apartment Communities (N: MAA) 250
MidSouth Bancorp (A: MSL)
1,000
Millipore Corp. (N: MIL)
250
Modine Manufacturing Co. (N: MOD)
500
Molex Inc. (M: MOLX)
500
Monsanto Co. (N: MON)
250
Motorola (N: MOT)
500
National Financial Partners (N: NFP)
500
National Fuel Gas Co. (N: NFG)
1,000
National Retail Properties (N: NNN)
100
Nationwide Financial Servs (N: NFS)
500
Nationwide Health Properties (N: NHP) 750
NCR Corp. (N: NCR)
250
New York Community Bancorp (N: NYB) 50
NewAlliance Bancshares (N: NAL)
250
NewBridge Bancorp (M: NBBC)
250
Newell Rubbermaid Inc. (N: NWL)
250
Newport Corp. (M: NEWP)
250
NIKE (N: NKE)
500
Northeast Utilities (N: NU)
250
Northern States Financial Corp. (M: NSFC) 250
NorthStar Realty Finance Corp. (N: NRF) 250
Northwest Natural Gas Co. (N: NWN)
250
NSTAR (N: NST)
500
Nutraceutical Int’l Corp. (M: NUTR)
250
Office Depot (N: ODP)
250
OGE Energy Corp. (N: OGE)
250
Old National Bancorp (N: ONB)
500
Old Republic Int’l Corp. (N: ORI)
1,000
Omega Healthcare Investors (N: OHI) 250
Omnicom Group (N: OMC)
250
OMNOVA Solutions Inc. (N: OMN)
500
ONEOK (N: OKE)
250
Oshkosh Corp. (N: OSK)
100
Owens & Minor Inc. (N: OMI)
200
Pacific Capital Bancorp (M: PCBC)
250
Parkway Properties (N: PKY)
250
Patriot Coal Corp. (N: PCX)
250
Paychex (M: PAYX)
250
Peabody Energy Corp. (N: BTU)
500
Exchange Key: N = New York Stock Exchange; A = American Stock Exchange; M = Nasdaq; O = Over the Counter
16
AAII Journal
Stock Strategies
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
Direct
Minimum
($)
Company (Exchange: Ticker)
800-278-4353
800-468-9716
877-978-7778
800-432-0140
877-602-7611
800-226-0083
877-978-7778
800-278-4353
800-733-9393
877-978-7778
800-278-4353
877-978-7778
800-457-2983
800 254-4961
800-278-4353
877-978-7778
877-498-8861
877-769-1893
866-659-2643
312-360-5390
877-978-7778
800-278-4353
800-742-6253
866-290-4388
800-956-3378
781-575-2879
800-242-0813
800-997-8438
800-619-9612
800-468-9716
866-877-6324
877-268-2263
888-218-4374
800-278-4353
888-472-1955
781-575-2879
800-278-4353
800-278-4353
877-679-5701
800-622-6757
877-978-7778
888-253-4522
800-278-4353
877-498-8861
877-978-7778
800-278-4353
877-978-7778
800-763-5891
800-468-9716
877-978-7778
Pennichuck Corp. (M: PNNW)
100
Pennsylvania Realty Trust (N: PEI)
250
People’s United Bank (M: PBCT)
250
Pepsi Bottling Group (N: PBG)
500
PepsiAmericas (N: PAS)
250
Pepsico, Inc. (N: PEP)
250
PerkinElmer (N: PKI)
250
Petroleum & Resource Corp. (N: PEO) 500
Pfizer (N: PFE)
500
PG&E Corp. (N: PCG)
250
Piedmont Natural Gas Co. (N: PNY)
250
Pier 1 Imports (N: PIR)
500
Pinnacle West Capital (N: PNW)
50
Plum Creek Timber Co. (N: PCL)
500
PMI Group (N: PMI)
250
PNM Resources (N: PNM)
50
PolyOne Corp. (N: POL)
250
Popular Inc. (M: BPOP)
100
Porter Bancorp (M: PBIB)
250
Potlatch Corp. (N: PCH)
250
PPG Industries (N: PPG)
500
Pride International Inc. (N: PDE)
1,000
Procter & Gamble Co. (N: PG)
250
Progress Energy (N: PGN)
250
ProLogis Trust (N: PLD)
200
Provident Bankshares Corp. (M: PBKS) 250
Public Service Enterprise (N: PEG)
250
Puget Energy (N: PSD)
500
Qualcomm Inc. (M: QCOM)
500
Quanex Corp. (N: NX)
250
Questar Corp. (N: STR)
250
Qwest Communications Int’l (N: Q)
500
RadioShack Corp. (N: RSH)
250
RAIT Investment Trust (N: RAS)
100
Redwood Trust (N: RWT)
100
Regions Financial Corp. (N: RF)
1,000
Reliv International (M: RELV)
250
Resource Capital Corp. (N: RSO)
250
Reynolds American (N: RAI)
500
Robbins & Myers (N: RBN)
300
Rockwell Automation (N: ROK)
1,000
Rockwell Collins (N: COL)
1,000
S&T Bancorp Inc. (M: STBA)
250
Safeway Inc. (N: SWY)
2,500
Sanderson Farms (M: SAFM)
500
Sandy Spring Bancorp Inc. (M: SASR) 250
Sara Lee Corporation (N: SLE)
250
SCANA Corp. (N: SCG)
250
Schnitzer Steel Industries (M: SCHN)
500
Sealed Air Corporation (N: SEE)
1,000
Telephone
Company (Exchange: Ticker)
877-773-6772
800-662-7575
877-978-7778
888-269-2377
800-278-4353
800-446-2617
800-524-4458
888-754-3100
800-554-7626
800-736-3001
866-877-6206
800-331-1119
877-978-7778
800-446-2617
877-978-7778
800-278-4353
800-278-4353
866-406-6840
312-588-4990
877-978-7778
877-978-7778
800-278-4353
877-978-7778
800-888-8494
877-536-3555
800-278-4353
800-278-4353
800-503-8903
877-978-7778
800-278-4353
877-978-7778
800-443-6852
800-278-4353
800-981-8676
800-278-4353
800-278-4353
877-978-7778
800-278-4353
877-978-7778
877-397-7229
866-659-2647
877-978-7778
877-978-7778
877-498-8861
877-978-7778
800-850-1774
800-278-4353
877-978-7778
866-537-8709
877-978-7778
Direct
Minimum
($)
Sempra Energy (N: SRE)
500
Sierra Pacific Resources (N: SRP)
250
Simon Property Group (N: SPG)
500
SkillSoft plc (M: SKIL)
200
Skyworks Solutions Inc. (M: SWKS) 1,000
Snap-on (N: SNA)
500
Sonoco Products Co. (N: SON)
250
South Jersey Industries (N: SJI)
100
Southern Co. (N: SO)
250
Southern Union Co. (N: SUG)
250
Southwest Airlines (N: LUV)
250
Southwest Gas Corp. (N: SWX)
250
Southwest Water Co. (M: SWWC)
250
Southwestern Energy Co. (N: SWN)
250
Sovereign Bancorp (N: SOV)
250
Sovran Self Storage Inc. (N: SSS)
100
Spartan Motors Inc. (M: SPAR)
250
Spectra Energy Corp. (N: SE)
250
Stanley Works (The) (N: SWK)
250
Staples (M: SPLS)
250
Sterling Bancorp (N: STL)
500
Sterling Financial Corp. (M: STSA)
250
Stewart Information Services (N: STC) 50
Sunoco (N: SUN)
250
SUPERVALU Inc. (N: SVU)
250
Susquehanna Bancshares (M: SUSQ)
250
Sussex Bancorp. (M: SBBX)
250
Synovus Financial Corp. (N: SNV)
250
Target Corp. (N: TGT)
500
Tasty Baking Co. (M: TSTY)
250
Taubman Centers (N: TCO)
250
TCF Financial Corp. (N: TCB)
250
Teleflex Inc. (N: TFX)
250
Texas Instruments (N: TXN)
250
Thornburg Mortgage (N: TMA)
500
TIB Financial Corp. (M: TIBB)
250
Tiffany & Co. (N: TIF)
250
Tompkins Financial (A: TMP)
100
Total System Services (N: TSS)
250
Transocean Inc. (N: RIG)
500
TrustCo Bank Corp. NY (M: TRST)
50
Twin Disc (M: TWIN)
250
Tyco International (N: TYC)
2,500
Tyson Foods (N: TSN)
250
U.S. Bancorp (N: USB)
250
UGI Corp. (N: UGI)
1,000
UIL Holdings Corp. (N: UIL)
250
UMPQUA Holdings (M: UMPQ)
250
UniSource Energy Corp. (N: UNS)
250
United Parcel Service (N: UPS)
250
(continued on next page)
June 2008
17
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
Direct
Minimum
($)
Company (Exchange: Ticker)
866-433-4801
800-488-9281
877-282-1168
888-485-2938
877-360-5385
877-978-7778
800-631-2355
877-881-5962
866-886-9902
800-524-4458
877-978-7778
888-368-7346
800-438-6278
818-553-7200
877-978-7778
800-519-3111
877-978-7778
877-978-7778
877-840-0492
United States Steel Corp. (N: X)
50
United Technologies Corp. (N: UTX)
250
Unitrin (N: UTR)
500
USEC (N: USU)
250
USG Corp. (N: USG)
500
Valspar Corp. (N: VAL)
1,000
Verizon Communications (N: VZ)
500
Visteon Corp. (N: VC)
1,000
Vulcan Materials Co. (N: VMC)
250
W Holding Co. (N: WHI)
100
W.P. Carey & Co. LLC (N: WPC)
500
Walgreen Co. (N: WAG)
250
Wal-Mart Stores (N: WMT)
250
Walt Disney Co. (N: DIS)
1,000
Washington Mutual (N: WM)
500
Washington REIT (N: WRE)
250
Waste Management (N: WMI)
500
Weingarten Realty Investors (N: WRI) 250
Wells Fargo & Co. (N: WFC)
250
Telephone
Company (Exchange: Ticker)
800-278-4353
877-588-4258
800-527-2495
877-978-7778
877-498-8861
781-575-2879
312-360-5207
800-558-9663
888-985-2064
800-278-4353
800-278-4353
800-278-4353
800-565-2067
781-575-3400
877-978-7778
877-946-6487
800-278-4353
877-272-9641
Direct
Minimum
($)
Wendy’s International Inc. (N: WEN)
250
Westamerica Bancorporation (M: WABC) 100
Westar Energy (N: WR)
250
Weyerhaeuser Company (N: WY)
500
Whirlpool Corp. (N: WHR)
250
Williams Companies (N: WMB)
250
Windstream Corporation (N: WIN)
250
Wisconsin Energy Corp. (N: WEC)
250
Wm. Wrigley Jr. Corp. (N: WWY)
500
Woodward Governor Co. (M: WGOV)
250
World Wrestling (N: WWE)
250
WSFS Financial Corp. (M: WSFS)
250
Wyeth (N: WYE)
500
XM Satellite Radio (M: XMSR)
1,000
XTO Energy (N: XTO)
500
Yahoo! (M: YHOO)
250
Yum! Brands (N: YUM)
250
Zep Inc. (N: ZEP)
250
Exchange Key: N = New York Stock Exchange; A = American Stock Exchange; M = Nasdaq; O = Over the Counter
(continued from page 13)
brokerage firm with no fees attached.
This is an advantage because the amount
of many dividend payments would otherwise typically entail the purchase of
odd-lot sizes, which often have higher
transaction charges.
However, many corporate direct
purchase plans allow participants to
make additional cash purchases of
shares at little or no cost—a feature no
brokerage firm can match.
And, direct purchase plans typically
have lower minimum investments than
most brokers.
Direct purchase plans are custommade for long-term, buy-and-hold
investors. While they are not on their
own a reason to buy a stock, they serve
as a shareholder bonus on a company
with promising long-term growth prospects.
How Do You Join?
Currently, around 438 companies
offer direct purchase plans, with minimums ranging from $10 to $2,500, with
$250 a typical minimum. In a few cases,
direct purchase plans are offered even
18
though no cash dividend is paid.
Table 1 lists the companies that
offer direct purchase plans, along with
a contact phone number and initial
investment minimum. They include
major corporations, as well as REITs
(real estate investment trusts).
Direct purchase plans are described
in a plan prospectus, which you can receive by contacting either the company’s
shareholder relations department or the
plan administrator. You should read the
plan prospectus or description carefully.
While the overall structure of most direct purchase plans is similar, they vary
in the details. The prospectus or plan
description will provide information on
such items as: eligibility requirements,
plan options, costs, how and when
purchases are made, how and when
certificates will be issued, and what participants should do when withdrawing
from the plan.
A Note About Taxes
Direct purchase and dividend
reinvestment plans have many advantages, but their tax status is not one
of them—unless you are investing
through an IRA (offered by a few of
the companies).
Whether you receive your dividends
in cash or have them reinvested, a taxable event has occurred, although the
tax treatment now is lower than it was
previously.
In addition, if you reinvest dividends, the IRS considers the “dividend”
to be equal to the fair market value of
shares acquired with reinvested dividends. The fair market price is the price
on the exchange or market where shares
are traded, not any discounted price. Furthermore, any brokerage commissions
paid by the company in open market
purchases to acquire the shares are
considered additional dividend income
to the participant.
When shares are sold, the tax basis
is the fair market value as of the date the
shares were acquired, plus any brokerage
commissions paid by the company, and
it is treated as income to the participant.
Participants receive 1099-DIV forms
each year from the company detailing
dividends to be treated as income as
reported to the IRS.
AAII Journal
Stock Strategies
Direct Stock Purchase Web Sites
American Stock Transfer & Trust Co.
www.amstock.com [go to Shareholder Services]
www.investpower.com
Provides a list of all direct purchase plans and dividend
reinvestment plans administered by the firm. By clicking
on the name of each company you can get a brief description of either kind of plan. For a direct purchase plan
prospectus, click “buy,” and then click on “plan materials.”
For a dividend reinvestment plan prospectus, contact the
shareholder relations department of the company you are
interested in.
The Bank of New York
(merged into BNY Mellon)
www.stockbny.com
BNY Mellon Shareowner Services
www.melloninvestor.com
Click on Investors and then Enroll in a Direct Stock
Purchase Plan for a listing of direct purchase and dividend
reinvestment plans. For a direct purchase plan prospectus,
click on “Invest Now” and then click on “View Plan Material.” For a dividend reinvestment plan prospectus, contact
the shareholder relations department of the company you
are interested in.
Computershare
www.computershare.com
Click on Investor Centre under Shareholder Services.
Then click on Investment Plans under Transact. You can
get a complete list of all dividend reinvestment plans and
direct purchase plans, or search for each separately. For a
direct purchase or dividend reinvestment plan prospectus,
click on “View” under “Plan Summary” and then select the
PDF link next to “Plan Brochure.”
Go to Company Facts & Forms, then Company List
and select “United States” under Search by Country for
a list of both direct purchase and dividend reinvestment
plans. For a direct purchase plan prospectus, click on
“yes” in the Company Specific Forms column and then
click on “Brochure/Prospectus.” To bring up the list of
direct purchase plans with a link to buying on-line, go to
Initial Purchase and select “United States” under Search Wells Fargo
by Country. For a dividend reinvestment plan prospectus, www.wellsfargo.com/com/shareowner_services
call the toll-free number listed and request a prospectus.
Click on “Investment Plans” for a list of direct purClicking on the company name itself will link you to the
chase
and dividend reinvestment plan companies. Click on
company Web site.
a company name to access a prospectus link, to buy on-line
or to print out an application form to mail.
Where to Get Information
Companies with direct purchase
plans appoint an outside agent to serve
as the administrator for their plan. These
administrators maintain plan records,
send account statements to participants,
furnish certificates for shares upon request—and handle the purchases and
sales of the shares.
Four major firms serve as administrators for U.S.-based direct purchase
plans and dividend reinvestment
plans:
• American Stock Transfer & Trust,
• Computershare,
• Bank of New York Mellon, and
• Wells Fargo.
Bank of New York and Mellon
Investor Services merged in 2007 into
BNY Mellon, but the merging of their
dividend reinvestment programs is not
complete. Therefore, the bank operates
separate Web sites for companies that
maintain programs with the bank.
The list above includes the five major Web sites with information on the
direct purchase and dividend reinvestment plans that they administer. These
sites also have educational articles on
direct purchase and dividend reinvestment plans in general. All five Web sites
also allow you to buy direct purchase
plan shares on-line at their sites.
A few other plan administrators
serve only a handful of dividend reinvestment plans with no direct purchase
features and limited on-line purchase
programs. In a few of these cases,
you can find the most information by
contacting the company directly. Also,
several companies act as administrators
for their own plans.
To find plan information from a
company directly, go to the company
Web site and look in the Investor Relations area or call the phone number
provided here. 
Maria Crawford Scott is editor of the AAII Journal; Cara Scatizzi is associate financial analyst at AAII.
June 2008
19