BBS: The Executive Network Information System - New York  914 667-4567
Date: 02-19-93 (04:30)              Number: 16784
  To: ALL                           Refer#: NONE                
From: DOUG D                          Read: NO                 
Subj: DRIP FAQ                      Status: PUBLIC MSG
Conf: Misc.Invest (1291)         Direction: FORWARD

re: DRIPs List
Last Post:  2/17/93
by: Doug DePrenger, et al.
at: doug_d@sdd.hp.com

What is a DRIP?
  DRIP stands for Dividend Reinvestment Plan. DRIP is a company-
sponsored way of purchasing shares of stock through the company with 
no brokerage fees. The dividends from the stock can be reinvested to 
purchase additional stock. New stock can also be purchased. 
  Some companies require initial purchase of stock through a broker 
while others allow first time purchase. Some companies give you a 
discount on the price of the stock when purchased through the DRIP 
program. 
  Many of these companies have banks administer their programs. For 
example, Exxon has First Chicago Trust run their account. 

How to buy:
  * Contact the DRIP administrator (the phone number listed below). 
    They have the most up-to-date information on purchase provisions. 
  * A.G. Edwards broker has a flat 16% of the share price special for 
    ordering one share of stock. 
  * Dean Witter's commission is 10% of purchase price or $50, 
    whichever is lower. 
  * The NAIC (National Association of Investors Corp) has a DRP 
    program for several companies (106 as of 11/1/92). You must be a 
    member of NAIC, but they will set you up for $5 per company. The 
    address is 
      NAIC
      Box 220
      Royal Oak, Michigan  48067
      (313)-543-0612 (phone)
      (313)-543-8442 (fax)
      Dues are $32/year.


How to sell:
  * The DRIP administrator will redeem your shares. Some companies 
    only redeem shares once a month, thus you may not get the best 
    price for your shares. 
  * One could request a certificate for N number of shares and sell 
    them through a broker. 

Advantages: 
  * No brokerage commissions (except possibly on the initial 
    purchase). 
  * Some companies offer stock at a discount. 

Disadvantages: 
  * Record keeping of the dividend reinvestments (for tax purposes)  
    can be monumental. 
  * Stocks are generally bought/sold on a fixed day, every 
    month...i.e. little control over price. Some companies it is done 
    per quarter. 
  * Some companies must be notified in writing in order to sell. 
  * Some companies send you the stock certificates so YOU sell them. 

Books:
  "Directory of Companies Offering Dividend Reinvestment Plans"
  by: Evergreen Enterprises, Laurel MD. 20725-0763
  $24.95

  "Buying Stocks Without a Broker"
  by: Charles B. Carlson
  Lists 900 companies/closed-end funds that offer DRPS. Company 
  profile and some plan-specifics are included. 

Newsletters:
  "The Moneypaper"
  1010 Mamaroneck Ave
  Mamaroneck, NY 10543

Other publications:
  "Directory of Dividend Reinvestment Plans"
  by: Joseph Tigue
  publisher: Standard & Poors, NY

Specials:
  Charles Schwab has DRP for *all* stocks purchased through them. For 
  each transaction: commission: 3.5% or $3.50 (whichever is LESS) for 
  dividends less than $250; 1.5% for dividends more than $250

Hints:
  * The local library may have copies of the books listed. They may 
    also have the newsletters listed. 
  * Contact shareholders relations dept of company (number shown 
    below) and get a DRP prospectus. Get an annual report while you 
    are at it. 

The List:
  * Stock symbols are in parenthesis
  * minimum shares: this is the minimum number of shares the purchaser 
    must already own (usually bought through a broker) before joining 
    DRP program. 

                        (nnnn) = minimum shares
                             Y = 1st share purchases direct
                                               %discount
               MIN/MAX
COMPANY NAME           INVESTMENT  PHONE

Abbott Labs (ABT)      10/5000           (1)     708-937-3923
 * Medical instruments manufacturer

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