Fortunately, a growing number of companies have implemented DRIPs with an IRA option. If a company offers an IRA option, it will be listed in the plan specifics. An attractive service offered by a growing number of DRIPs is electronic funds transfer from shareholders' accounts. For example, DQE has made monthly optional cash investments easy by providing automatic supplemental contributions via direct funds transfer from a participant's bank account. Exxon is another company with an automatic investment service.
Some DRIPs make it easy to give stock as gifts.
Exxon's program has a gift-giving feature, as does Texaco's. Under Texaco's program, you can open an Investor Services Plan account in a person's name, and the company provides you with a gift certificate to give the recipient. Most DRIPs permit investors to sell stock directly from the plan, and the fees for selling are usually much lower than you'd pay by going through a broker. That's because the company sells shares in bulk and gets volume discounts unavailable to small investors. In a few DRIPs, it is even possible to sell stock through the company without paying any brokerage commission.