1. Buy stock directly with Dividend Reinvestment Plans ("DRIPs") or Direct Stock Purchase Plans ("DSPs"). Most plans will require a $50 minimum investment. Look for no-transaction-fee plans, and research any companies that offer such plans. With these you don't have to deal with brokers (or pay their commissions) because you buy stock straight from the company.

• Not all companies offer this option, but more than 1,000 do. ^[2] You'll have to search for the companies that offer direct purchase programs, but you can find a partial list at[1].
• In most cases you can make a one-time purchase or set up an automatic periodic-purchase plan. The latter is a disciplined and cost-effective way to build up a stock portfolio.
• Watch out for fees. Some plans charge fees on one-time and/or recurrent investments and dividend reinvestments. Look for plans that charge no fees.
• The best plans not only charge no fees, but also gives you a discount, such as 5 percent, on dividend reinvestment.
• The main difference between DRIPs and DSPs is that to participate in DRIPs you must already own at least one share of the company's stock. You then collect your dividends in the form of additional shares instead of cash.^[3] DSPs, on the other hand, allow you to buy your first and every share directly from the company, saving you the cost of buying and transferring your shares from a broker.