Charles Carlson is a certified financial advisor and the author of eight books about investing. He is best known for his bestseller, "Buying Stocks without a Broker." This book instructs investors on purchase stocks directly through a company, thereby avoiding paying a commission to a brokerage firm. This system can save a person about 5 percent on each transaction. Carlson recommends investing in companies that offer a dividend reinvestment plan (DRIP). DRIPs allow investors to reinvest their dividends back into the company's stock for free. Carlson calls commission-free equity investments "no-load stocks." The downside of most dividend reinvestment plans is they require an investor own at least one share of the stock before they are allowed to participate. But, there are ways to purchase your first share of a stock without a huge investment.
Direct Purchase Plans
Look for companies that offer Direct Purchase Plans (DDPs). You can find out if a company offers this type of plan by checking out the investor relations section of a company's website.
First Share Membership
Enroll in a First Share membership program. First Share is a company that sells a single share of a stock for the sole purpose of joining a DRIP.
One Share Stock Certificates
Purchase a single share from One Share. This company is similar to First Share as they will also sell a single share of stock. The difference is One Share offers this service for folks who collect physical stock certificates. Purchasing the stock certificate allows investors to qualify for a DRIP.
