Some companies that offer a direct stock purchase plan include Aetna, Sony, Home Depot, Nike and Yahoo, according to Computershare. A DSPP allows an investor to bypass stockbrokers and their fees and purchase stock directly from the issuing company's transfer agent, explains Investopedia.Continue Reading
To determine whether a company makes its stock available for direct purchase, refer to the investor relations page of the company website, which lists the name of the stock transfer agent, advises Forbes. Through a list of stock transfer agents such as that available from the Securities Transfer Association, Inc., investors can contact transfer agents to learn what companies they represent.
Among their advantages, DSPPs offer investors a savings in brokerage fees and a low minimum investment requirement, states Forbes. Although DSPP investors are unable to define a purchase date and are therefore not in control of the price at which they purchase their stock, dollar-cost averaging makes DSPPs a good investment vehicle for the long-term investor who makes regular ongoing purchases, states Investopedia.
To make a stock purchase through a DSPP, establish an account with the stock transfer agent, states Forbes. Make a one-time transfer of the minimum investment amount for the desired stock or establish the amount to invest every month.Learn more about Investing