Items you will need
- Brokerage account or
- PG DSPP account
Proctor & Gamble (NYSE stock symbol PG) is one of America’s oldest companies. It began as a soap and candle business in 1837, founded by William Proctor and James Gamble. Today PG is one of America’s premier corporations. There are two ways to purchase PG stock. You can go the traditional route of buying the stock through a broker. However, Proctor & Gamble is one of the many leading companies that offer investors a direct stock purchase plan (DSPP) that enables investors who have limited funds to purchase PG stock conveniently and at low cost.
Open a brokerage account if you don’t already have one. If you choose the traditional method of buying through a broker, you will need to supply a statement of your net worth, income, and investment goals. As of 2009, most brokerage firms required a minimum initial deposit of $1000 (more for “margin accounts” that have borrowing privileges). You will have to pay brokerage commissions but can invest in any publicly traded company’s stock plus other securities. Once you’ve opened the account, all you have to do to purchase PG stock is place your order online or by phone and deposit sufficient funds in the account.
Invest in PG stock through the Proctor & Gamble Shareholder Investment Program. The first step is to read the Prospectus for this direct stock purchase plan, which is available for download/printing (see Resources). The transfer agent for PG stock is J. P. Morgan Securities and the program is administered by P&G Shareholder Services Department. If you have questions you can call them at 1-800-742-6253.
Select the plan features that fit your needs. You can elect to store your stock certificates and have dividends reinvested at no charge. The Stockholder Investment Program also allows you to transfer or gift stock (to a family member, for example). Once you’ve read the prospectus and decided on the features you need, you may open the account online or print the form, fill it out and mail it to the address provided on the form.
Purchase PG stock either by check/money order or online using their Investing tools (see Resources) and electronic debiting of your bank account. If you use electronic debiting there are no set –up or transaction fees for purchases, so 100 percent of your money goes to buy stock. The minimum investment is $250, payable in $50 monthly installments (online transactions only). There is a $2.50 per transaction fee for orders paid by check or money order. Sales of stock incur a transaction fee of $7.50 online or $15.00 if the order is placed off-line, plus 12 cents per share.