How to invest in the Coca Cola Co. Dividend Reinvestment Plan with $50

by braniac ; Updated July 27, 2017

Items you will need

  • Computer
  • Internet
  • One Share of Coca Cola Co. (KO)

The Coca Cola Company (KO) engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. Founded in 1886, headquartered in Atlanta, Georgia the Coca Cola Company is the largest beverage company in the world. Coca Cola is a member of the Dow Jones Industrial 30 and S&P 500. The Coca Cola Company (KO) offers a Dividend Reinvestment Plan to all shareholders of record and there is a plan for new investors.

Step 1

If you own shares of The Coca Cola Co. with a broker you can get them transferred to Computershare Trust Company, for a small fee usually $25-$30. If you do not own shares, open an account at Sharebuilder.com, Scottrade.com or TDameritrade.com and purchase one share. There is another option open to new investors. The Dividend Reinvestment plan allows new investors to either purchase share with a one time invest of $500.00 or make 10 consecutive transactions of $50.00 to equal $500.00.

Step 2

Once enrolled in the plan, you can purchase stock at $50 per transaction computing your account to fractional shares up to six decimal places. There is also a $3.03 fee for each transaction and a $10 set-up fee. For example if the share price is $57 and you invest $50 the shares purchased will be .648596 after all fees. Each investment is made on Monday of every week, except in a month when the dividends are paid then the dividend and optional cash investments are made together. Dividends are paid in April 1, July 1, October 1 and December 15

Step 3

With the reinvestment of dividends and optional cash investments your position in The Coca Cola Company will grow in no time.

Tips

  • Always do research with investing money.