How To Invest $25 Per Month With No Fees (Investing In Stocks For Dividends)

When you buy stock directly from a company (through a transfer agent such as Computershare), you have the opportunity to purchase stock with no fees. Especially when you are investing lower amounts (such as $25 each month) and averaging in over time, it’s possible to minimize or even eliminate fees. Learn how it is possible for smaller dividend growth investors to average into dividend stock ownership with zero fees.

While it’s more difficult to minimize or eliminate fees than 5 or 10 years ago, it still is possible. You just need to know the right places to look. Learn about DRIPs (Dividend Reinvestment Plans), transfer agents, averaging in, and the philosophy behind small, incremental investments in dividend-paying companies. Learn how even the smallest investors can get ahead buying stock directly.

Disclosure: I used to own Exxon Mobil (Ticker: XOM) but sold my position. I do not own Abbvie (Ticker: ABBV) but might initiative a position at some point.

Disclaimer: I’m not a licensed investment advisor, and today’s video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions.

Comments

Isaiah92 says:

Hey ian i have a question, should one pay off all debt first before starting to invest ? I know that for dividend investing its best to start asap. Thanks !!

Gateway 17 says:

Great video, very informative!!

Alexander says:

I recommend Robinhood (commission free brokerage). In time they will all be fee-less, but that’s the best bet for the present.

Brandon Wright says:

How long does an investment purchase take to process through Computershare and would it be faster with At Ameritrade? How many trades can you make a week through Computershare? I am currently going through a delay.. I purchased three separate stocks in the same week on a Sunday and only two have processed through and it has now been almost six business days..

bernie lee says:

I was in the same boat when I started investing. I wasn’t willing to commit alot of $ of course and with brokers like E-Trade that charge $8 per trade. I felt like i was starting at a loss… So now I use Robinhood which is free. Also I found that the company I work for offers employee purchase program. I get a discount on the shares and also the dividends are reinvested. I am honestly lucky that I work for a company that has great growth potential and a solid balance sheet..
However like Ian was saying.. I found out i could invest in drip program through compushares in companies like Clorox etc. They can take the $25 out of an account every month for you. Even if the stock is worth $100+ per share.

Frank Stickney says:

Thanks Ian. This was really helpful. I am going to check out Computershare to see what they have to offer. I have always used Schwab for my broker. They are really good to me. They offer banking services as well.

Serginho Urquidez says:

Stash investment and Robinhood are good for investment. One is 1 dollar per month (stash) and you can buy only ETF’s and the other one it’s free (robinhood) and you can buy the stock you want!!!!

Robert Pintaric says:

I tryed to register at Computershare, but the answer. No possibility in Germany, to much laws 🙂 regards, Robert

Max Bee says:

Hey Ian if I Averaged into a stock could I raise the amount I invest a month or would it throw off the point of averaging in

learn and entertain says:

Hi Ian,

I opened an account on computershare.com and tried to enroll for a DRIP with no purchase fee, I came to know that, I can’t enroll for DRIP until I purchase stock, when I spoke to help desk regarding the stock I am interested in they said, I have to first purchase it thru a broker then move the stock to computershare only then I can enroll for DRIP on computershare.com… Is this how I have to enroll for DRIP, I am just checking if this process is right… I appreciate your reply!

avburns says:

I’ve become a bit jaded with Computershare after my PG (Procter & Gamble) was transferred to another stock transfer company and the fees were raised. I still use them for my XOM (Exxon Mobil) investment because of the zero fees but some of the other plans seem more trouble than they’re worth. Having to have one share of stock before you can invest in the DRiP, the initial setup plans, the high commission if you ever have to sell, etc.

I would go the Robinhood (zero commission) or Stockpile ($.99 commission) route, you have access to more companies than those on Computershare. I use Stockpile and I know they have the option of automatically reinvesting dividends. I’m not sure about Robinhood but the zero commission should make it easy to add to your dividend and buy whatever amount of stock you desire.

Commission free ETF’s may also be an option. I use Schwab which has commission-free ETF’s and SCHD, their dividend ETF is currently trading under $50. You can open an account with them (I believe when you pair your brokerage account with a checking account they waive setup fees), buy a share of SCHD and instantly have an ETF consisting of 99 dividend paying stocks.

Snowfirel says:

Robinhood Ap for phone or Ipad works great, no buy or sale fees.

Instalator Iasi says:

wow !!
6:07 when you said ” exxon” i was on this adress checking the current yield: https://www.nasdaq.com/symbol/xom

SuicidelG says:

I appreciate the video you’ve made addressing this. Though, I might of misrepresented myself because I was just completely exhausted from working overtime all week when I wrote that comment. I was more frustrated that it seemed like there wasn’t a great viable option for lower investment amounts so that I could cost average my investments instead of doing $500 every 1/2 months. I’ve since done the search on computershare that you recommended, and although I don’t see Exxon on the list, I’ve narrowed it down to about 8 seemingly decent and under valued stock choices for regular investment. Now this weekend I’m going to go through my shortlist and do my stock evaluation, dividend discount modeling, and just reading what these companies are actually about. That last part is one of my bigger issues with this method. I don’t know a single one of these companies listed so I have to get myself amped about them lol. Abbvie looks pretty attractive, seems solidly undervalued and has good growth rate, great margins, good dividend % but is getting close to the payout ratio danger zone. One other one is bancorpsouth, seems to be a trememdous dividend growth stock, but I’m hesitant in investing on banks. You mentioned that you shouldn’t obvioulsy use fly by night brokers, was that also in reference to robinhood? I had contemplated using Robinhood as a method to invest in lower priced stocks that I think are solid and feel good about but can’t use computershare to invest in them on a cost effective basis.They don’t currently have a drip program but I read that they’re working on one. Whats your opinion on Robinhood? My last quest/thought isn’t really related to this topic, but is something that I’ve been trying to contemplate and haven’t found great answers to. I’m currently an union electrician apprentice and will be a journeymen in a few years. I have 3 pension systems, one being particularly large, which is fully funded and should be there by the time I retire. I’m unsure of whether I should still be making a pretax investment account in addition to this pension. My understanding is that by the time I retire I’ll be making as much, if not more, than my current pay from the pension alone. My current thought is that I should go with the devil I know, current tax rate, than the devil I don’t know because we have no idea what a tax structure/% will look like that far down the road. Whats your opinion? Thanks again and take care!

PunkNDisorderlyGamer says:

Ian, can you do a video on today’s brokerage account options geared more towards millennials, like Robinhood, M1 finance, Stash, Acorns, etc.?

Sheri W says:

very helpful. thank you

Corey G says:

Thank You,

I am age 47, and this is exactly what I was looking to do. I realize if I started at age 20 I would’ve been doing much better due to compounding interest over time.
However, I can comfortably do $100-$1,000 a month for investing. I already have a 401k and am just looking to improve my finances over the next 10-20 years.

Villanor Viernes says:

how to make an account

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