re: Blue Chip Dividend Stocks

quote:

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many large blue chip companies have plans where you can buy stock directly from them, I know XOM and JNJ have it. You can set up drip accounts through them. It's relatively easy, just do the initial paperwork and then send them money every month, no commission fee.

that'd be the cheapest way to go.

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But many of them (if not all) still use a third party such as Wells Fargo, Computershare, and New York Bank Mellon, correct?

This is what you'll find:
Some companies are completely free to buy
Some will charge a fee for every automatic transaction (usually just $1)
and
The companies that charge a per transaction fee also charge a per share fee. Usually .01 or .02 per share bought. (F, CVX, and KO come to mind)

Dividends
some charge a reinvestment fee. Some do not.

For energy, XOM and COP are the cheapest. I don't think they charge any fees, anywhere. CVX is more expensive to buy. You'll just have to check each companies direct stock purchase plan.