Stock Strategies
Bypassing the Broker:
AAII’s 2006 Guide to
Direct Purchase Plans
By Maria Crawford Scott and Cara Scatizzi
Looking for a low-cost, low-minimum
avenue to start investing in individual
firms?
Currently, over 460 companies in the
U.S. offer direct purchase plans, allowing you to buy shares directly from the
company without a broker.
Direct purchase plans are a form
of dividend reinvestment plan, but in
a traditional dividend reinvestment plan
you must first enroll in the plan in order
to participate, which means buying your initial
shares through a broker. Direct purchase plans allow you
to completely bypass brokers.
The Dividend Advantage
The attraction of dividend-paying stocks has increased
since dividends started to receive preferential tax treatment
in 2003, and it should continue now that that treatment will
be extended through 2010.
Reinvesting dividends allows you to build up your position in a company and keeps your money working for you
over time. But keeping costs low is important, which is one
of the attractions of a direct purchase plan.
Of course, a number of major discount brokerage firms
offer their own dividend reinvestment plans, which allow you
to reinvest the dividends of the stocks you own through the
brokerage firm with no fees attached. This is an advantage
because the amount of many dividend payments would otherwise typically entail the purchase of odd-lot sizes, which
often have higher transaction charges.
However, many corporate direct purchase plans allow participants to make
additional cash purchases of shares
at little or no cost—a feature no
brokerage firm can match.
And, direct purchase
plans typically have lower
minimum investments than
most brokers.
Direct purchase plans are
custom-made for long-term, buyand-hold investors. While they are not
on their own a reason to buy a stock, they serve
as a shareholder bonus on a company with promising longterm growth prospects.
How Do You Join?
Currently, around 460 companies offer direct purchase
plans, with minimums ranging from $25 to $2,500, with $250
a typical minimum. In a few cases, direct purchase plans are
offered even though no cash dividend is paid.
Table 1 lists the companies that offer direct purchase
plans, along with a contact phone number and initial investment minimum. They include major corporations, as well as
REITs (real estate investment trusts).
Direct purchase plans are described in a plan prospectus,
which you can receive by contacting either the company’s
shareholder relations department or the plan administrator.
You should read the plan prospectus or description carefully.
While the overall structure of most direct purchase plans
(continued on page 20)
June 2006
15
Stock Strategies
Table 1. Firms With Direct Purchase Plans
Telephone
800-522-6645
800-937-5449
800-432-0140
800-937-5449
800-929-6782
888-756-1769
800-446-2617
800-633-4236
800-937-5449
800-522-6645
800-522-6645
800-937-5449
800-522-6645
800-535-3056
800-356-5343
800-355-5191
800-442-0077
800-331-9474
800-937-5449
800-255-2237
800-328-6955
800-937-5449
800-937-5449
800-522-6645
800-522-6645
800-937-5449
877-679-5704
800-522-6645
312-360-5260
800-937-5449
800-937-5449
800-205-8314
866-857-2223
800-937-5449
800-522-6645
800-937-5449
312-360-5386
866-517-4570
800-348-8288
800-937-5449
866-222-8292
877-498-8861
800-937-5449
800-642-9855
888-643-4269
800-937-5449
800-522-6645
800-937-5449
800-937-5449
877-498-8861
Direct
Minimum
Company (Exchange: Ticker)
($)
Aames Investment Corp. (N: AIC)
250
Acadia Realty Trust (N: AKR)
250
Acuity Brands (N: AYI)
500
Adams Express Co. (N: ADX)
500
ADC Telecommunications (NQ: ADCT)
500
AEGON (N: AEG)
250
Aetna (N: AET)
500
AGL Resources (N: ATG)
250
Air Products & Chemicals (N: APD)
500
Akzo Nobel N.V. (NQ: AKZOY)
250
Alaska Communic’s Sys (NQ: ALSK)
500
Albertsons (N: ABS)
250
Allegheny Technologies (N: ATI)
250
ALLETE (N: ALE)
250
Alliant Energy Corp. (N: LNT)
250
Allstate Corp. (N: ALL)
50
Altria Group (N: MO)
500
AMB Property Corp. (N: AMB)
500
AMCOL International Corp. (N: ACO)
250
Ameren Corp. (N: AEE)
250
American Electric Power (N: AEP)
250
American Financial Realty Trust (N: AFR) 250
American Home Mortgage Invest (N: AHM) 250
American States Water Co. (N: AWR)
500
AmerUs Group Co. (N: AMH)
1,000
Ametek Inc. (N: AME)
250
AmSouth Bancorp (N: ASO)
1,000
Anadarko Petroleum Corp. (N: APC)
1,000
Andersons Inc. (The) (NQ: ANDE)
250
Anthracite Capital Inc. (N: AHR)
250
Anworth Mortgage Asset (N: ANH)
1,000
Aqua American (N: WTR)
500
Arch Chemicals (N: ARJ)
500
Arch Coal Inc. (N: ACI)
250
Archstone-Smith Trust (N: ASN)
200
Arrow Financial Corp. (NQ: AROW)
300
Arthur J Gallagher & Co. (N: AJG)
250
ArvinMeritor (N: ARM)
500
AT&T (N: T)
500
Atmos Energy Corp. (N: ATO)
1,250
Avaya (N: AV)
1,500
Avery Dennison Corp. (N: AVY)
500
Badger Meter Inc. (A: BMI)
100
Bank of America Corp. (N: BAC)
1,000
Bank of New York Co. (N: BK)
1,000
Bar Harbor Bankshares (A: BHB)
250
Barnes Group (N: B)
250
BCSB BankCorp Inc. (NQ: BSSB)
250
Beazer Homes USA (N: BZH)
250
Becton, Dickinson and Co. (N: BDX)
250
Telephone
800-756-8200
877-498-8861
800-937-5449
800-468-9716
800-446-2617
800-272-7675
800-446-2617
800-522-6645
800-522-6645
888-485-2389
800-524-4458
800-522-6645
877-248-4237
800-937-5449
800-937-5449
800-519-3111
800-446-2617
800-432-8224
800-937-5449
800-937-5449
800-446-2617
800-937-5449
800-937-5449
800-937-5449
800-524-4458
800-937-5449
800-937-5449
800-937-5449
800-937-5449
800-522-6645
888-269-8845
800-522-6645
800-522-6645
877-248-4237
800-522-6645
800-937-5449
888-524-4458
800-428-9578
800-937-5449
800-261-0598
800-736-3001
800-522-6645
800-522-6645
800-937-5449
800-522-6645
800-937-5449
517-788-1868
800-756-8700
866-897-1807
800-937-5449
Direct
Minimum
Company (Exchange: Ticker)
($)
Bedford Property Investors (N: BED) 1,000
Best Buy Co. (N: BBY)
500
BIW Limited (A: BIW)
250
Black Hills Corp. (N: BKH)
250
Blyth (N: BTH)
250
Bob Evans Farms (NQ: BOBE)
100
Borders Group (N: BGP)
500
BorgWarner Automotive (N: BWA)
500
Boston Beer Co. (N: SAM)
500
Boston Properties (N: BXP)
250
Bowne & Co. (N: BNE)
500
BRE Properties (N: BRE)
500
British Airways (N: BAB)
250
Brooke Corp. (NQ: BXXX)
250
Brookeline Bancorp (NQ: BRKL)
1,000
Buckeye Partners (N: BPL)
250
C.R. Bard (N: BCR)
250
Calamos Asset Mgmt. (NQ: CLMS)
200
California Water Serv Co. (N: CWT)
250
Camden National Corp. (NQ: CAC)
250
Campbell Soup Co. (N: CPB)
500
Canada Southern Petroleum LTD (NQ: CSPLF) 250
Capital Directions (OTC: CTDN.OB)
250
Capitalsource Inc. (N: CSE)
100
Caraustar Industries (NQ: CSAR)
250
Carpenter Technology Corp. (N: CRS)
250
Carramerica Realty (N: CRE)
250
Carrollton Bancorp (NQ: CRRB)
250
Carver Bancorp (A: CNY)
250
Cascade Financial Corp. (NQ: CASB)
250
Cascade Natural Gas (N: CGC)
250
Cash America Int’l (N: CSH)
250
Caterpillar (N: CAT)
250
Cemex (N: CX)
250
Cendant Corp. (N: CD)
250
Central Vermont Public Serv (N: CV)
250
Ceridian Corp. (N: CEN)
500
CH Energy Group (N: CHG)
100
Chase Corp. (A: CCF)
250
Chemical Financial (NQ: CHFC)
50
Chesapeake Utilities Corp. (N: CPK)
1,000
ChevronTexaco Corp. (N: CVX)
250
CIGNA Corp. (N: CI)
250
Citizens & Northern Corp. (NQ: CZNC) 250
Citizens (A: CIA)
250
Citizens Banking Corp. (NQ: CBCF)
100
CMS Energy Corp. (N: CMS)
250
Colgate Palmolive (N: CL)
500
Colonial Properties Trust (N: CLP)
200
Columbus McKinnon (NQ: CMCO)
250
Exchange Key: N = New York Stock Exchange; A = American Stock Exchange; NQ = Nasdaq National Market; OTC = Over the Counter
16
AAII Journal
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
800-937-5449
800-937-5449
800-426-5523
800-522-6645
800-937-5449
800-522-6645
800-522-6645
877-248-4237
800-521-5571
800-937-5449
877-287-7526
800-470-7418
800-522-6645
800-937-5449
800-268-7369
800-937-5449
866-582-1370
800-818-6599
800-259-2345
800-522-6645
800-432-0140
800-522-6645
800-368-5948
800-552-4034
800-937-5449
800-522-6645
800-522-6645
866-388-8558
800-488-3853
800-937-5449
800-247-0400
800-937-5449
800-937-5449
800-253-6057
800-937-5449
800-347-8625
800-937-5449
800-833-8699
800-522-6645
888-764-5603
800-522-6645
800-522-6645
800-568-3476
888-752-4831
800-733-5001
312-360-5354
800-522-6645
800-252-1800
800-910-8277
800-522-6645
Direct
Minimum
Company (Exchange: Ticker)
($)
Commercial Net Lease Realty (N: NNN) 100
Community Bank System (N: CBU)
250
Community Central Bank (NQ: CCBD)
250
ConocoPhillips (N: COP)
250
Consolidated Water Co. (NQ: CWCO)
250
Costco Wholesale (NQ: COST)
250
Credit Suisse Group (N: CSR)
250
CRH (NQ: CRHCY)
250
CSX Corp. (N: CSX)
500
Curtiss-Wright Corp. (N: CW)
250
CVS Corp. (N: CVS)
100
DaimlerChrysler AG (N: DCX)
1,000
Dampskibsselskabet Torm (NQ: TRMD) 250
Darden Restaurants (N: DRI)
1,000
Deere & Co. (N: DE)
500
Dell Inc. (NQ: DELL)
250
Del Monte Foods Co. (N: DLM)
200
Delphi Corp. (OTC: DPHIQ)
500
Delta Air Lines Inc. (OTC: DALRQ)
250
Deutsche Telecom AG (N: DT)
250
Diebold (N: DBD)
500
Dime Community Bancshares (N: DCOM) 300
Dollar General Corp. (N: DG)
50
Dominion Resources (N: D)
350
Domino’s Pizza Inc. (N: DPZ)
250
Dover Corp. (N: DOV)
500
Dow Jones & Co. (N: DJ)
1,000
DTE Energy Co. (N: DTE)
250
Duke Energy Corp. (N: DUK)
250
Duke Realty Corp. (N: DRE)
250
Duquesne Light Holdings (N: DQE)
105
Eastern Co. (A: EML)
250
Eastman Chemical Co. (N: EMN)
250
Eastman Kodak Co. (N: EK)
150
Easylink Services Corp. (NQ: EASY)
250
Edison International (N: EIX)
1,000
Electronic Data Systems (N: EDS)
250
Eli Lily and Co. (N: LLY)
50
Emerson Electric Co. (N: EMR)
250
Energen Corp. (N: EGN)
250
Energy East Corp. (N: EAS)
25
Entergy Corp. (N: ETR)
1,000
Equifax (N: EFX)
500
Equity Office Properties Trust (N: EOP) 250
Equity Residential (N: EQR)
250
Essex Property Trust (N: ESS)
100
Estee Lauder Companies (N: EL)
250
Exxon Mobil Corp. (N: XOM)
250
Fannie Mae (N: FNM)
250
FBL Financial Group (N: FFG)
250
Telephone
800-937-5449
866-337-3311
800-446-2617
800-730-6001
888-294-8285
800-524-4458
800-522-6645
800-368-5498
800-279-1237
800-937-5449
781-575-2879
800-522-6645
800-937-5449
800-937-5449
800-522-6645
800-524-4458
800-937-5449
800-786-2543
800-522-6645
800-524-4458
800-884-4225
800-937-5449
650-343-9300
800-286-9178
800-317-4445
800-522-6645
800-937-5449
816-556-2312
800-522-6645
877-248-4237
888-756-3638
800-522-6645
800-522-6645
866-360-5339
800-524-4458
800-524-4458
800-522-6645
800-522-6645
800-716-3607
800-937-5449
800-577-0177
800-522-6645
800-522-6645
888-426-6700
800-522-6645
800-565-7890
866-870-9360
800-432-0140
800-522-6645
877-248-4237
Direct
Minimum
Company (Exchange: Ticker)
($)
Federal Realty Investment Trust (N: FRT) 250
Federated Department Stores (N: FD)
500
FedEx Corp. (N: FDX)
1,000
Ferrellgas Partners (N: FGP)
1,000
Fifth Third Bancorp (NQ: FITB)
250
First Commonwealth Fin’l (N: FCF)
500
First Niagara Financial (NQ: FNFG)
250
FNB Corp. (N: FNB)
50
Ford Motor Co. (N: F)
1,000
Franklin Street Properties (A: FSP)
250
Freddie Mac (N: FRE)
250
Freescale Semiconductor (N: FSL)
500
Friedman Billings Ramsey Group (N: FBR) 250
Frontier Insurance Group (OTC: FTERQ) 25
Gemplus International (NQ: GEMP)
250
GenCorp (N: GY)
500
General American Investors (N: GAM)
500
General Electric Co. (N: GE)
250
General Growth Properties (NQ: GGP)
250
Genworth Financial (N: GNW)
200
German American Bancorp (N: GABC) 100
Glacier Bancorp (NQ: GBCI)
250
Glenborough Realty Trust (N: GLB)
100
Glimcher Realty Trust (N: GMT)
100
Goodyear Tire & Rubber Co. (N: GT)
250
Gray Television (N: GTN)
250
Great Atlantic & Pacific (N: GAP)
250
Great Plains Energy (N: GXP)
500
Green Mountain Power (N: GMP)
50
Groupe Danone (N: DA)
250
Guidant Corp. (N: GDT)
250
H.J. Heinz Co. (N: HNZ)
250
Hanarotelecom (NQ: HANA)
250
Harley-Davidson (N: HDI)
500
Harrahs Entertainment (N: HET)
200
Health Care Prop. Investors (N: HCP)
750
Health Care REIT (N: HCN)
1,000
Hershey Foods Corp. (N: HSY)
250
Hillenbrand Industries (N: HB)
250
Holly Corp. (N: HOC)
250
Home Depot (N: HD)
500
Home Properties of NY (N: HME)
1,000
Hudson City Bancorp (NQ: HCBK)
250
IBM (N: IBM)
500
ICICI Bank, Ltd. (N: IBN)
250
IdaCorp (N: IDA)
200
Idaho Independent Bank (NQ: IIBK)
150
Imation Corp. (N: IMN)
500
Impala Platinum Holdings (OTC: IMPUY) 250
Imperial Chemical Industries (N: ICI)
250
June 2006
17
Stock Strategies
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
877-248-4237
800-937-5449
800-426-5523
800-937-5449
800-522-6645
800-522-6645
800-937-5449
800-522-6645
877-360-5362
201-703-2265
800-522-6645
800-937-5449
800-937-5449
201-324-0313
800-522-6645
800-317-4445
800-254-2823
800-522-6645
800-456-1169
800-522-6645
800-937-5449
800-937-5449
877-602-7397
800-522-6645
800-937-5449
800-937-5449
800-522-6645
800-786-2556
800-539-7216
800-482-3638
800-522-6645
866-557-8695
800-847-4351
312-360-5341
877-248-4237
866-655-7238
800-937-5449
877-248-4237
800-524-4458
800-824-5707
800-524-4458
800-944-2214
800-522-6645
800-649-9895
866-828-8170
877-498-8861
800-468-9716
877-282-1174
866-367-6351
800-937-5449
Direct
Minimum
Company (Exchange: Ticker)
($)
Imperial Tobacco Group (N: ITY)
250
Independence Community Bank (NQ: ICBC) 250
Independent Bank Corp. MA (NQ: INDB) 250
Independent Bank Corp. MI (NQ: IBCP) 250
IndyMac Bancorp (N: NDE)
250
Infineon Technologies AG (N: IFX)
250
Infinity Property & Casualty (NQ: IPPC) 250
Infosys Technologies, LTD (NQ: INFY)
250
Innkeepers USA Trust (N: KPA)
250
Interchange Fin’l Servs (NQ: IFCJ)
100
International Paper Co. (N: IP)
500
Interpool Inc. (N: IPX)
250
Intersil Corp. (NQ: ISIL)
250
Investors Financial Servs (NQ: IFIN)
250
Iona Technologies (NQ: IONA)
250
iStar Financial (N: SFI)
100
ITT Industries (N: ITT)
500
J.C. Penney Co. (N: JCP)
250
J.M. Smucker Co. (N: SJM)
250
J.P. Morgan Chase & Co. (N: JPM)
250
Jeffersonville Bancorp. (NQ: JFBC)
250
John H. Harland Co. (N: JH)
500
Johnson Controls (N: JCI)
250
Jones Lang LaSalle Inc. (N: JLL)
250
JPS Industries Inc. (OTC: JPSC)
250
Kellwood Co. (N: KWD)
100
Kelly Services (NQ: KELYA)
250
Kerr-McGee Corp. (N: KMG)
750
KeyCorp (N: KEY)
250
KeySpan (N: KSE)
250
Kilroy Realty Corp. (N: KRC)
750
Kimco Realty Corp. (N: KIM)
100
Kinder Morgan (N: KMI)
250
Knape & Vogt Mfg. Co. (NQ: KNAP)
100
Koninklijke Philips Electronics (N: PHG) 250
Kraft Foods (N: KFT)
500
Kramont Realty Trust (N: KRT)
100
Kyocera Corp. (N: KYO)
250
Lear Corp. (N: LEA)
250
Lehman Brothers Holdings (N: LEH)
500
Libbey (N: LBY)
100
Liberty Property Trust (N: LRY)
250
Lincoln National Corp. (N: LNC)
500
Lion Inc. (OTC: LINN)
150
Liz Claiborne (N: LIZ)
500
Lockheed Martin Corp. (N: LMT)
250
Longs Drug Stores Corp. (N: LDG)
500
Lowe’s Companies (N: LOW)
250
LSB Bancshares (NQ: LXBK)
250
Lubrizol Corp. (N: LZ)
250
Telephone
888-582-3686
800-522-6645
800-522-6645
877-268-5209
201-324-1664
800-317-4445
800-937-5449
800-522-6645
800-311-4816
800-457-8968
800-813-2847
888-909-9922
800-937-5449
800-468-9716
800-446-2617
800-621-7825
888-201-5538
877-536-3553
800-246-5761
866-455-3115
888-648-8154
800-522-6645
800-937-5449
800-522-9114
800-937-5449
800-522-6645
800-356-6423
800-577-4676
800-522-6645
800-937-5449
800-522-6645
800-522-6645
800-937-5449
800-446-2617
800-468-9716
312-360-5315
800-522-6645
800-522-6645
800-522-6645
800-648-8166
800-522-6645
800-524-4458
800-522-6645
800-522-6645
800-937-5449
800-432-0140
800-468-9716
800-756-8200
877-665-4223
800-522-6645
Direct
Minimum
Company (Exchange: Ticker)
($)
Lucent Technologies (N: LU)
1,000
Luminent Mortgage Capital (N: LUM)
100
Luxottica Group (N: LUX)
250
MacDermid (N: MRD)
50
Macerich Co. (N: MAC)
250
Mack-Cali Realty Corp. (N: CLI)
2,000
Magellan Petroleum Corp. (NQ: MPET) 250
Manulife Financial Corp. (N: MFC)
500
Marriott Int’l (N: MAR)
350
Marsh & McLennan Companies (N: MMC) 500
Massey Energy Corp. (N: MEE)
250
Mattel (N: MAT)
500
MBT Financial Corp. (NQ: MBTF)
250
McCormick & Co. (N: MKC)
250
McDermott International (N: MDR)
500
McDonald’s Corp. (N: MCD)
500
McGraw-Hill Companies (N: MHP)
500
MDU Resources Group (N: MDU)
250
Meadowbrook Insurance (N: MIG)
250
Meadwestvaco Corp. (N: MWV)
1,500
Medtronic (N: MDT)
250
Mellon Bank Corp. (N: MEL)
500
Merchants & Manufacturers (OTC: MMBI) 250
Merck (N: MRK)
350
Met-Pro Corp. (N: MPR)
1,000
MFA Mortgage Investments (N: MFA) 1,000
MGE Energy (NQ: MGEE)
250
Michael’s Stores (NQ: MIK)
500
Microsoft Corp. (NQ: MSFT)
1,000
Mid-Amer Apartment Communities (N: MMA) 250
MidSouth Bancorp (A: MSL)
1,000
Mid-State Bancshares (NQ: MDST)
1,000
Millipore Corp. (N: MIL)
250
Mills Corp. (N: MLS)
250
Modine Manufacturing Co. (NQ: MOD)
500
Molex Inc. (NQ: MOLX)
500
Monsanto Co. (N: MON)
250
Motorola (N: MOT)
500
National Financial Partners (N: NFP)
500
National Fuel Gas Co. (N: NFG)
1,000
Nationwide Financial Servs (N: NFS)
500
Nationwide Health Properties (N: NHP) 750
NCR Corp. (N: NCR)
250
Neiman Marcus Group (N: NMG)
250
NewAlliance Bancshares (N: NAL)
250
Newell Rubbermaid (N: NWL)
250
Newport Corp. (NQ: NEWP)
250
NIKE (N: NKE)
500
Nokia Corp. (N: NOK)
250
Nordic American Tanker Shipping (N: NAT) 250
Exchange Key: N = New York Stock Exchange; A = American Stock Exchange; NQ = Nasdaq National Market; OTC = Over the Counter
18
AAII Journal
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
800-999-7269
800-937-5449
800-937-5449
800-937-5449
800-338-8446
800-522-6645
800-522-6645
800-677-1749
800-519-3111
800-522-6645
800-524-4458
866-235-0232
866-222-4059
800-432-0140
800-522-6645
800-937-5449
877-644-5601
877-588-4124
800-937-5449
800-937-5449
800-937-5449
800-468-9716
800-522-6645
800-901-8878
800-432-0140
877-602-7611
800-522-6645
800-937-5449
800-522-6645
800-733-9393
800-522-6645
800-522-6645
800-937-5449
800-522-6645
800-457-2983
800-254-4961
800-937-5449
800-522-6645
888-767-7166
800-522-6645
800-937-5449
800-764-7483
866-290-4388
800-956-3378
866-820-0125
800-242-0813
800-522-6645
800-522-6645
312-588-4157
800-468-9716
Direct
Minimum
Company (Exchange: Ticker)
($)
Northeast Utilities (N: NU)
250
Northern New York Bancorp (OTC: NTHN) 250
Northern States Financial Corp. (NQ: NSFC) 250
Northwest Natural Gas Co. (N: NWN)
250
NSTAR (N: NST)
500
Office Depot (N: ODP)
250
OGE Energy Corp. (N: OGE)
250
Old National Bancorp (NQ: ONB)
500
Omega Healthcare Investors (N: OHI) 250
Omnicom Group (N: OMC)
250
OMNOVA Solutions Inc. (N: OMN)
500
ONEOK (N: OKE)
250
Oshkosh Truck Corp. (N: OSK)
100
Owens & Minor Inc. (N: OMI)
200
Pacific Capital Bancorp (NQ: PCBC)
250
Pacific Energy Partners (N: PPX)
250
Pan Pacific Retail Prop. (N: PNP)
250
Parkway Properties (N: PKY)
100
Paychex (NQ: PAYX)
250
Peabody Energy Corp. (N: BTU)
500
Pennichuck Corp. (NQ: PNNW)
100
Pennsylvania Realty Trust (N: PEI)
250
People’s Bank (NQ: PBCT)
250
People’s Energy Corp. (N: PGL)
250
Pepsi Bottling Group (N: PBG)
500
PepsiAmericas (N: PAS)
250
PerkinElmer (N: PKI)
250
Petroleum & Resour Corp. (N: PEO)
500
Pfeiffer Vacuum Technologies (N: PV)
250
Pfizer (N: PFE)
500
PG&E Corp. (N: PCG)
250
Phelps Dodge Corp. (N: PD)
1,000
Piedmont Natural Gas Co. (N: PNY)
250
Pier 1 Imports (N: PIR)
500
Pinnacle West Captial (N: PNW)
500
Plum Creek Timber Co. (N: PCL)
500
PMI Group (N: PMI)
250
PNM Resources (N: PNM)
50
PolyOne Corp. (N: POL)
250
PPG Industries (N: PPG)
500
Pride International Inc. (N: PDE)
1,000
Procter & Gamble Co. (N: PG)
250
Progress Energy (N: PGN)
250
ProLogis Trust (N: PLD)
200
Provident Bankshares Corp. (NQ: PBKS) 250
Public Service Enterprise (N: PEG)
250
Puget Energy (N: PSD)
250
Puma AG RUDOLF Dassler Sport (OTC: PMMAY) 250
Qualcomm Inc. (NQ: QCOM)
500
Quanex Corp. (N: NX)
250
Telephone
800-729-6788
888-218-4374
800-937-5449
800-242-4653
888-472-1955
800-524-2879
800-937-5449
800-522-6645
877-679-5701
877-248-4237
800-622-6757
800-522-6645
888-253-4522
800-524-4458
800-937-5449
877-498-8861
800-522-6645
800-937-5449
800-522-6645
800-622-6757
877-773-6772
800-522-6645
800-522-6645
800-524-4458
888-683-4901
800-937-5449
800-446-2617
800-524-4458
800-937-5449
888-SJI-3100
800-554-7626
800-736-3001
800-331-1119
800-522-6645
800-446-2617
800-522-6645
800-937-5449
800-937-5449
888-660-5513
800-522-6645
800-522-6645
800-937-5449
800-522-6645
800-522-6645
800-888-8494
866-828-8176
800-522-6645
800-522-6645
800-937-5449
800-522-6645
Direct
Minimum
Company (Exchange: Ticker)
($)
Questar Corp. (N: STR)
250
RadioShack Corp. (N: RSH)
250
RAIT Investment Trust (N: RAS)
250
Reader’s Digest Assoc. (N: RDA)
1,000
Redwood Trust (N: RWT)
100
Regions Financial Corp. (N: RF)
1,000
Reliv’ International (NQ: RELV)
250
Reuters Group (NQ: RTRSY)
250
Reynolds America (N: RAI)
500
Rhodia (N: RHA)
250
Robbins & Myers (N: RBN)
500
Rockwell Automation (N: ROK)
1,000
Rockwell Collins (N: COL)
1,000
Ryerson Tull (N: RYI)
500
S&T Bancorp Inc. (NQ: STBA)
250
Safeway Inc. (N: SWE)
2,500
Sanderson Farms (NQ: SAFM)
500
Sandy Spring Bancorp Inc. (NQ: SASR) 250
Sap AG (N: SAP)
250
SEMCO Energy (N: SEN)
250
Sempra Energy (N: SRE)
500
Signet Group (N: SIG)
250
Simon Property Group (N: SPG)
500
Sizeler Property Inv. (N: SIZ)
500
Sky Financial Group (NQ: SKYF)
500
Skyworks Solutions Inc. (NQ: SWKS) 1,000
Snap-on (N: SNA)
500
Sonoco Products Co. (N: SON)
250
Sonoma Valley Bank (OTC: SBNK.OB)
250
South Jersey Industries (N: SJI)
100
Southern Co. (N: SO)
250
Southern Union Co. (N: SUG)
250
Southwest Gas Corp. (N: SWX)
100
Southwest Water Co. (NQ: SWWC)
250
Southwestern Energy Co. (N: SWN)
250
Sovereign Bancorp (N: SOV)
250
Sovran Self Storage Inc. (N: SSS)
100
Spartan Motors Inc. (NQ: SPTN)
250
Stanley Works (The) (N: SWK)
250
Staples (NQ: SPLS)
250
Sterling Bancorp (N: STL)
500
Sterling Financial Corp. (NQ: STSA)
250
Stewart Information Servs (N: STC)
50
Stora Enso OYJ (N: SEO)
250
Sunoco (N: SUN)
250
Susquehanna Bancshares (NQ: SUSQ) 250
Synovus Financial Corp. (N: SNV)
250
Target Corp. (N: TGT)
500
Tasty Baking Co. (NQ: TSTY)
250
Taubman Centers (N: TCO)
250
June 2006
19
Stock Strategies
Table 1. Firms With Direct Purchase Plans (con’t)
Telephone
800-522-6645
877-248-4237
800-522-6645
800-937-5449
877-881-5696
800-522-6645
800-981-8676
800-937-5449
800-937-5449
800-522-6645
800-937-5449
800-522-6645
877-397-7229
800-924-1490
800-522-6645
800-937-5449
800-522-6645
800-937-5449
800-522-6645
800-822-7096
800-522-6645
800-937-5449
800-522-6645
888-502-6356
866-537-8709
800-937-5449
800-522-6645
800-937-5449
888-485-2938
877-360-5385
800-522-6645
Direct
Minimum
Company (Exchange: Ticker)
($)
TD BankNorth, Inc. (N: BNK)
500
TDK Corp. (N: TDK)
250
Tektronix (N: TEK)
500
Teleflex Inc. (N: TFX)
250
Telefonaktiebolaget LM Ericsson (NQ: ERICY) 250
Tesco (NQ: TESOF)
250
Texas Instruments (N: TXN)
250
Thornburg Mortgage (N: TMA)
500
TIB Financial Corp. (NQ: TIBB)
250
Tiffany & Co. (N: TIF)
250
Tompkins Trustco (A: TMP)
100
Total System Services (N: TSS)
250
Transocean Inc. (N: RIG)
500
Tribune Co. (N: TRB)
500
Trizec Properties (N: TRZ)
300
Trustreet Properties (N: TSY)
250
Twin Disc (NQ: TWIN)
250
TXU Corp. (N: TXU)
500
Tyco International (N: TYC)
2,500
Tyson Foods (N: TSN)
250
U.S. Bancorp (N: USB)
250
UIL Holdings Corp. (N: UIL)
250
UMPQUA Holdings (NQ: UMPQ)
250
Unilever (N: UN)
250
UniSource Energy Corp. (N: UNS)
250
United Industrial Corp. (N: UIC)
250
United Parcel Service (N: UPS)
250
Unitrin (N: UTR)
500
USEC (N: USU)
250
USG Corp. (N: USG)
500
Valspar Corp. (N: VAL)
1,000
Telephone
800-631-2355
877-881-5962
866-886-9902
800-542-4458
800-522-6645
888-368-7346
800-438-6278
818-553-7200
800-522-6645
800-519-3111
800-522-6645
800-522-6645
877-840-0492
800-937-5449
800-937-5449
800-446-2617
781-575-2879
800-558-9663
800-446-2617
312-360-5309
800-937-5449
800-937-5449
800-937-5449
800-937-5449
800-565-2067
800-522-6645
781-575-3400
800-522-6645
877-946-6487
800-937-5449
Direct
Minimum
Company (Exchange: Ticker)
($)
Verizon Communications (N: VZ)
500
Visteon Corp. (N: VC)
1,000
Vulcan Materials Co. (N: VMC)
250
W Holding Co. (N: WHI)
100
W.P. Carey & Co. LLC (N: WPC)
500
Walgreen Co. (N: WAG)
50
Wal-Mart Stores (N: WMT)
250
Walt Disney Co. (N: DIS)
1,000
Washington Mutual (N: WM)
500
Washington REIT (N: WRE)
250
Waste Management (N: WMI)
500
Weingarten Realty Investors (N: WRI) 250
Wells Fargo & Co. (N: WFC)
250
Wendy’s International Inc. (N: WEN)
250
Western Digital Corp. (N: WDC)
250
Whirlpool Corp. (N: WHR)
250
Williams Companies (N: WMB)
250
Wisconsin Energy Corp. (N: WEC)
250
Wm. Wrigley Jr. Corp. (N: WWY)
500
Woodhead Industries Inc. (NQ: WDHD) 50
Woodward Governor Co. (NQ: WGOV)
250
World Wrestling (N: WWE)
250
WPS Resources Corp. (N: WPS)
100
WSFS Financial Corp. (NQ: WSFS)
250
Wyeth (N: WYE)
500
XL Capital LTD (N: XL)
250
XM Satellite Radio (NQ: XMSR)
1,000
XTO Energy (N: XTO)
500
Yahoo! (NQ: YHOO)
250
Yum! Brands (N: YUM)
250
Exchange Key: N = New York Stock Exchange; A = American Stock Exchange; NQ = Nasdaq National Market; OTC = Over the Counter
(continued from page 15)
is similar, they vary in the details. The
prospectus or plan description will
provide information on such items as:
eligibility requirements, plan options,
costs, how and when purchases are
made, how and when certificates will be
issued, and how participants withdraw
from the plan.
A Note About Taxes
Direct purchase and dividend
reinvestment plans have many advantages, but their tax status is not one of
them—unless you are investing through
20
AAII Journal
an IRA (offered by a few companies).
Whether you receive your dividends
in cash or have them reinvested, a taxable event has occurred, although the
tax treatment now is lower than it was
previously.
In addition, if you reinvest dividends, the IRS considers the “dividend”
to be equal to the fair market value
of shares acquired with reinvested
dividends. The fair market price is the
price on the exchange or market where
shares are traded, not any discounted
price. Furthermore, any brokerage commissions paid by the company in open
market purchases to acquire the shares
are considered additional dividend income to the participant.
When shares are sold, the tax basis
is the fair market value as of the date
the shares were acquired, plus any
brokerage commissions paid by the
company, and it is treated as income
to the participant.
Participants receive 1099-DIV
forms each year from the company
detailing dividends to be treated as
income as reported to the IRS.
For a complete description of how both
direct purchase plans as well as dividend reinvestment plans work, go to the on-line version
of this article at www.aaii.com.
Where to Get Information on
Direct Purchase Plans
Companies with direct purchase
plans appoint an outside agent to serve
as the administrator for their plan. These
administrators maintain plan records,
send account statements to participants,
furnish certificates for shares upon request—and handle the purchases and
sales of the shares.
Four major firms serve as administrators for U.S.-based direct purchase
plans and dividend reinvestment
plans:
• American Stock Transfer & Trusts,
• Computershare,
• Bank of New York, and
• Mellon Investor Services.
All four have extensive Web sites
(see accompanying box) with information on the direct purchase and dividend
reinvestment plans that they administer,
as well as educational articles on direct
purchase and dividend reinvestment
plans in general.
All four Web sites also allow you to
buy direct purchase plan shares on-line
at their sites. 
Direct Stock Purchase and Dividend Reinvestment Plan Administrators
American Stock Transfer & Trust Co.
www.amstock.com [go to Shareholder Services]
www.investpower.com
call the toll-free number listed and request a prospectus.
Clicking on the company name itself will link you to the company Web site.
Provides a list of all direct purchase plans and dividend
reinvestment plans administered by the firm. By clicking
on the name of each company you can get a brief description of either kind of plan. For a direct purchase plan
prospectus, click “buy,” and then click on “plan materials.”
For a dividend reinvestment plan prospectus, contact the
shareholder relations department of the company you are
interested in.
Computershare
www.computershare.com
The Bank of New York
www.stockbny.com
Go to Company List and select “United States” under
search by country for a list of both direct purchase and
dividend reinvestment plans. For direct purchase plans
only, go to Initial Purchase and select “United States”
under search by country. For a direct purchase plan prospectus, click on “purchase” and then click on “brochure/
prospectus.” For a dividend reinvestment plan prospectus,
Click on Investor Centre under Shareholder Services. Then
click on Investment Plans under Transact. You can get a complete list of all dividend reinvestment plans and direct purchase plans, or search for each separately. For a direct purchase plan prospectus, click on “view” under “plan summary.”
You can request a dividend reinvestment plan prospectus (by
mail) by clicking on “view” under “plan summary.”
Mellon Investor Services
www.melloninvestor.com
Go to For Investors and then Investment Plans for a listing of
direct purchase and dividend reinvestment plans. For a direct
purchase plan prospectus, click on Invest Now and then click
on View Plan Material. For a dividend reinvestment plan prospectus, contact the shareholder relations department of the
company you are interested in.
Maria Crawford Scott is editor of the AAII Journal; Cara Scatizzi is associate financial analyst at AAII.
June 2006
21