If you split ownership among family members you can enjoy several hundred dollars tax exemption per family member each year. Grandma had just a few companies to pick from in those days but today over 900 U.S. firms encourage that. Some companies let you start without owning shares and others who pay no dividend whatsoever, have set up DRIP programs to let you buy shares right from the company. Called DRIPs, these reinvested dividends have long been a disciplined way to build wealth with almost no transaction costs. Knowing that, several readers have asked which socially responsible firms have DRIPs.
Companies provide DRIPs for several reasons.
Most importantly, DRIP investors tend to select stocks for the long haul. You really can not easily trade in and out of these reinvestment programs. Although selling shares is quit simple, the transactions typically are carried out a week or two after you ask for your money. That's not like having a cash account with a broker where your proceeds are available within three business days. Each share you own in such a program is not being traded on the open market.