Chances are, the company will probably contact you once it has your name as a registered shareholder. However, there is a trend developing in the industry toward the implementation of fees for purchasing shares through the plans. Most plans require only one share. But Bristol-Myers Squibb, for example, raised its minimum to 50 shares. Check with the company beforehand concerning share requirements for enrollment so there are no surprises when it comes time to join the program.
DRIPs differ between companies.
Some DRIPs purchase stock with optional cash payments once a month, while others do so once a quarter or even once a week. The timing of purchases may differ. Some firms buy on the first business day of each month, while others purchase stock on the 15th of each month. Some DRIPs permit investors to take possession of some of their dividends and reinvest the remainder, while others require that all dividends are rein vested. Some programs allow individuals to make optional cash payments without reinvesting dividends, while others do not.