DRIP Investing, Step by Step

DRIP-Sponsored IRA Accounts

The second method is to purchase stock in companies that offer DRIP-sponsored IRAs. Some even offer Education IRA and Roth IRA options.

The following companies will allow the investor to shelter retirement investments in stock in their DRIPs:

  • American Electric Power Co., Inc.
  • Ameritech
  • Atmos Energy
  • Bell Atlantic
  • Chrysler
  • Connecticut Energy
  • Connecticut Water
  • Exxon-Mobil
  • Fannie Mae
  • Ford Motor
  • GTE
  • Houston Industries
  • Lucent Technologies
  • McDonald's
  • Morton International
  • OGE Energy
  • Philadelphia Suburban
  • SBC Communications
  • Sears
  • UtiliCorp
  • Wal-Mart

These companies may levy an annual fee of $35 to $50 or so for maintaining the IRA account, to offset the costs of acting as a Trustee for these retirement accounts. Also, the list of companies offering IRA options is growing every year, so a current DRIP directory should be consulted for more information.

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