Do you like Direct Stock Purchase Plans?

A place to discuss anything... except credit cards!
6 posts
User avatar
obxfisherman
Centurion Member
Centurion Member
 
Posts: 106
Joined: Sat Feb 14, 2015 12:32 pm
Location: North Carolina

Do you like Direct Stock Purchase Plans?

Postby obxfisherman » Thu Jul 23, 2015 7:24 pm

Hello all, I am curious regarding your opinions on DSPP. I recently opened one with Disney. I like Disney as a company, and I plan to invest with them for my lifetime. Don't plan to sell Disney stock anytime soon. anyway do any of you use a direct stock purchase plan? if so what company? why do you like that company? If you don't like DSPP why don't you like them? Thanks for your perspectives.
Cards Currently In My Wallet(See Avatar)
Chase Marriott Rewards Visa Signature (Daily Purchase): 13.4K
NFCU Visa SignatureCash Rewards: 5K
Sheetz Discount Card 3c Off PerGallon Of Gas Everyday

Total Credit Card Limits Roughly: 61.5K


User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3746
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Do you like Direct Stock Purchase Plans?

Postby CarefulBuilder14 » Thu Jul 23, 2015 7:45 pm

obxfisherman wrote:Hello all, I am curious regarding your opinions on DSPP. I recently opened one with Disney. I like Disney as a company, and I plan to invest with them for my lifetime. Don't plan to sell Disney stock anytime soon. anyway do any of you use a direct stock purchase plan? if so what company? why do you like that company? If you don't like DSPP why don't you like them? Thanks for your perspectives.

I don't like them.

1. It's an accounting headache. It's much better to keep shares of multiple companies in a centralized account, where you can view all your positions together. If you're uneasy about having everything at one institution, you can do what I do by having individual stocks at one company (Fidelity for me) and index ETFs at another (I have most of mine at Vanguard). I'm not worried about the solvency or effective regulation of those institutions, but either one of those could be vulnerable to hacking.

2. Years ago, when brokerage expenses were higher, a DSPP could have saved real money. These days, discount brokerage expenses are low. If a $5 or $10 commission per transaction sounds like a lot, then you're probably better-off with low-cost, no-commission index ETFs...or just making a smaller number of purchase transactions each year (each with a larger sum).

3. If you're going to do the work of picking individual companies, then the prices you pay (and sell shares for) matter a lot. DSPPs usually force you to take whatever the day's closing price is.

How many individual companies do you plan to invest in?
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

User avatar
obxfisherman
Centurion Member
Centurion Member
 
Posts: 106
Joined: Sat Feb 14, 2015 12:32 pm
Location: North Carolina

Re: Do you like Direct Stock Purchase Plans?

Postby obxfisherman » Thu Jul 23, 2015 7:53 pm

CarefulBuilder14 wrote:How many individual companies do you plan to invest in?


Thanks for your input. Disney is the only company I plan to individually invest in, My IRA is parked at Vanguard in a target date fund, so I just sort of set it and forget it. I only get charged $1 to buy shares, what kind of sucks though is purchases aren't made at the end of the day, or at the end of the week, it's once a month...which kind of bothers me. What really hurts is to sell shares. it costs like $15 to sell. Luckily I don't plan on selling in the immediate future, so there's that.
Cards Currently In My Wallet(See Avatar)
Chase Marriott Rewards Visa Signature (Daily Purchase): 13.4K
NFCU Visa SignatureCash Rewards: 5K
Sheetz Discount Card 3c Off PerGallon Of Gas Everyday

Total Credit Card Limits Roughly: 61.5K

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3746
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Do you like Direct Stock Purchase Plans?

Postby CarefulBuilder14 » Thu Jul 23, 2015 9:42 pm

obxfisherman wrote:
CarefulBuilder14 wrote:How many individual companies do you plan to invest in?


Thanks for your input. Disney is the only company I plan to individually invest in, My IRA is parked at Vanguard in a target date fund, so I just sort of set it and forget it. I only get charged $1 to buy shares, what kind of sucks though is purchases aren't made at the end of the day, or at the end of the week, it's once a month...which kind of bothers me. What really hurts is to sell shares. it costs like $15 to sell. Luckily I don't plan on selling in the immediate future, so there's that.

You might consider Tradeking if you want to buy other individual stocks later, or more Disney shares.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Re: Do you like Direct Stock Purchase Plans?

Postby takeshi » Fri Jul 24, 2015 8:40 am

I don't directly invest in individual companies either but I'm relatively new to this. I'm sticking with index funds for low cost, diversity and simplicity. Currently only building up one fund, Vanguard Total Stock Market, but intend to have an asset allocation of probably 3 funds in the long run to includes stocks, international and bonds.

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3746
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Do you like Direct Stock Purchase Plans?

Postby CarefulBuilder14 » Fri Jul 24, 2015 11:36 am

I'm not the fan of Vanguard I used to be. The Vanguard website has a lot of problems, and the process of moving money in and out can be a headache.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when



Return to “The Lounge”

Who is online

Users browsing this forum: No registered users and 1 guest