For Those That Are Interested in Dividend Reinvestment Plans (DRIPs).

I have been investing via Dividend Reinvestment Plans since 1999 when I started with Exxon. I have grown to favor DRIPs over most other investments. I like DRIPs because after paying an initial fee, you can make reoccurring investments for free or at much lower costs than most discount brokers. Minimum reoccurring investments typically range between $25 and $100 per month. Additionally, you frequently have the option of having dividends reinvested for free. Some companies charge a fee for dividend reinvestment; however, you can just as easily avoid the fee by having these dividends direct deposited to your bank account.

The first thing to understand about DRIPs is that your shares will be held by a "transfer agent." My two favorite transfer agents are Computershare and BNYMellon. If you're interested in starting a DRIP, I recommend you go directly to their sites and see if any of the stocks on your watch list can be purchased directly through them for initial setup.

A few examples of stocks that can be purchased directly through these transfer agents are:

Purchased directly through Computershare:

* Exxon Mobil (XOM)

* Lowe's Company (LOW)

* Pfizer (PFE)

* Wal-Mart (WMT)

Purchased directly through BNY Mellon:

* Conoco Phillips (COP)

* Health Care REIT (HCN)

* Limited Brands (LTD)

* Pepsico (PEP)

* The Bank of New York Mellon (BK)

* The McGraw-Hill Companies (MHP)

Another popular transfer agent is Wells Fargo.

Many transfer agents require you to have an initial share before enrolling. When this is the case, I prefer to use Directinvesting's site to establish my first share. Direct Investing will coordinate the initial stock purchase and administrative setup with the stock's transfer agent.

Starting DRIPs can be a little time consuming because it will take you some time to find those DRIPs that are low fee or no fee. Additionally, it will take you some time to find the cheapest means of starting a DRIP. Basically, expect to spend $10-$30 to start a DRIP.

My favorite DRIPs that I hold are (Stock - Transfer Agent):

Johnson & Johnson (JNJ) - Computershare

Wal-Mart (WMT) - Computershare

Exxon Mobil (XOM) - Computershare

Lowes (LOW) - Computershare

3M (MMM) - Wells Fargo

RPM (RPM) - Wells Fargo

Aflac (AFL) - Aflac

Southern Company (SO) - Southern Company

Dow Chemical (Dow) - BNY Mellon

McGraw Hill (MHP) - BNY Mellon

Each of the above DRIPs have no or low cost methods of reoccurring investment.

I went a little overboard and bought a lot of DRIPs. The following are DRIPs that also offer no or low cost reoccurring investment. I continue to hold these and will only buy more if their earnings improve (Stock - Transfer Agent).

Alcoa (AA) - Computershare

Illinois Tool Works (ITW) - Computershare

Manitowoc (MTW) - Computershare

Baker Hughes (BHI) - BNY Mellon

Harris Corp (HRS) - BNY Mellon

Limited (LTD) - BNY Mellon

Manpower (MAN) - BNY Mellon

Sherwin Williams (SHW) - BNY Mellon

Cummins (CMI) - Wells Fargo

Pentair (PNR) - Wells Fargo

Graco (GGG) - Wells Fargo

Overall, I hold about $15,962 in DRIPs that have a net dividend yield of 2.7%. This gives me a current annual dividend of $431.56. I intend to continue to grow this portfolio until it reaches a level that will offer significant dividend income in retirement (at least $4000/yr). Right now, I'm investing about $300 per month and will ratchet this reoccurring investment up periodically as our household income increases and as we pay off our investment properties.