Dividend Re Investment Plans Direct Investment Plans Investors

• Investors can purchase shares of stock directly from the company • Shares

• investor needs to own at least one share to enroll in the

• requires only a small initial investment & stock can be purchased in

• low cost access to capital • DRIP investors are usually stable, long-term

• not an immediate purchase/sale, takes more time and effort to buy or

• investor must purchase one share of stock, with the certificate issued in

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Dividend Re. Investment Plans & Direct Investment Plans

• Investors can purchase shares of stock directly from the company • Shares can be purchased in small amounts

• investor needs to own at least one share to enroll in the plan • the dividends are automatically reinvested to purchase more shares at no fee • shareholders can buy more stock through the plan with little or no fee (sometimes in amounts as small as $10)

• requires only a small initial investment & stock can be purchased in small amounts • some DRIPS offer stocks at a discount of 3 -5% • no broker commission, low cost • • companies that offer DRIPS are generally large & wellestablished, so there is less volatility in stock price • small, regular investments are less stressful for cautious investors • • relatively low maintenance

• low cost access to capital • DRIP investors are usually stable, long-term shareholders which lessens the volatility of the stock • the steady flow of reinvested capital helps to stabilize normal market fluctuations • many companies already have employee stock option distribution channels already established, which have been expanded to sell stock directly to investors

• not an immediate purchase/sale, takes more time and effort to buy or sell shares because the transaction must be processed through the company; there is more time for price fluctuations between order and execution • brokers do not widely promote DRIPS because there is no commission involved; more investor responsibility • can be confusing with taxation because the reinvested dividends are considered taxable income and must be accounted for

• investor must purchase one share of stock, with the certificate issued in his/her name • purchase thru brokerage or • purchase directly from company if the company has a DIP • • enroll in DRIP, either through the company directly or through a third-party transfer agent company Contact investor relations of the specific company to learn the individual program details