Once you have identified a company with a DRIP, in most cases you have to become a shareholder of record to enroll. This is an important point. Once you are a shareholder of record, contact the company for a DRIP application and prospectus. 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.