by Zindy Maseko
There are companies that allow an investor to purchase stocks directly from the company. This is perfectly okay according to the Securities and Exchange Commission. These are called Direct Stock Plans. It is called a DSPP. The company may require that you already have stocks through employment with the company. It is not required in all companies.
One method of investing direct in a company is by way of the Direct Dividend Reinvestment Plan. It is commonly called a DRIP. The good aspect of this type of plan is that instead of receiving the dividends you agree to reinvest the dividends in more stock in the company. It is a regular Direct Stock Plan with a reinvestment agreement. You may do the same reinvestment plan with your other stocks and mutual funds even if you have a broker.
It will astound you the number of very good companies that will allow you to buy stocks direct by setting up a plan. The ranges of possibilities include utility companies, fast food stocks, entertainment and retail stocks.
A Stock Picker
Company brand products did not become staples in most homes because of clever packaging and cute commercials. The brands we as consumers rely on are on shopping list because the particular product is tried and true to its word. The household purchaser can make or break a product. The true clout of the American consumer is not to be underestimated in the Stock Market.
In the brand name product area you may need to look on the packaging to determine the name of the company to find the stock. Some favorites like Clorox, Johnson & Johnson, and others are listed under the familiar company name. Due to mergers and acquisitions many name brand products have become subsidiaries or subsumed in a larger company’s product line. All you need to do is check out the references on the label or customer service information that is located somewhere on the product.
Blue chip stocks
Blue Chip Stocks are quality stocks that have a proven track record. A Blue Chip stock is like a member of the family in the American pastoral landscape. The Blue Chip stock makes toilet paper, laundry soap, aluminum, steel , washing machines and just about every well known brand we used every day The Blue Chip stock is Bank of America, U.S. Steel, Proctor & Gamble and others we think of as being our companies.
Like any familiar item the Blue Chip stocks become like a comfortable old pair of sneakers. We know where they are and they are easy to slip into, but they may not be as exciting as say Google or Baidu. In recent months some of the Blue Chip stocks have been a flight to safety for some investors. Not all Blue Chip stocks are alike, but some have been grossly undervalued and therefore a good buy.
The Blue Chip stocks merit a good review in all times not just in times of market uncertainty.