A direct purchase plan (DIP) allows you to purchase stock directly from a company. While not all companies offer DIPs, they are common in larger companies. Most plans also have restrictions on when investors can purchase shares. The biggest perk of DIPs is the ability to avoid paying commissions to brokers. DIPs are also ideal for investors with long term investment horizons. Procter & Gamble has a DIP, however, it is referred to as a SIP or the P&G Shareholder Investment Program.
Obtain and review the prospectus for the program. The prospectus will describe the terms and conditions of the sale.
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Fill out an application. You will need the same information you need to open a bank account. This includes a social security number or taxpayer ID. Applicants can be individuals, charities or trusts. If it's for a trust, the trust must be included with the application.
Fund your account. The minimum initial investment for a SIP is $250. This can be paid with a check or money order. If you are a current shareholder, the minimum amount is a $50.
Review administrative fees and commission. Unlike DIPs, the P&G SIP does charge fees and commissions. There is no fee for enrollment or dividend reinvestment, however, the sales fee is $15 and $7.50 if requested online, plus $0.12 per share.