Although the stock price of Exxon Mobil Corp. (ticker: XOM) has been above $50 per share for the entire five-year period ending June 30, 2011, it is possible to buy stock in the largest oil company based in America with $50.
Exxon Mobil offers a dividend reinvestment plan, commonly called a DRIP, to all shareholders of record. If you own shares of Exxon Mobil in your own name, go to Computershare.com and create an account.
If you own shares of Exxon Mobil with a broker you can get them transferred to Computershare, the transfer agent for Exxon Mobil, for a fee. If you do not own shares, open an account at a discount broker such as Sharebuilder, Scottrade or TD Ameritrade and purchase one share. You can also open an account by investing either $500 or making $50 monthly investments for 10 months.
Once enrolled in the plan, you can purchase stock at $50 per transaction by computing your account to fractional shares up to six decimal places. For example, if the share price is $68.36 and you invest $50, the number of shares purchased will be .731422. Each investment is made weekly. Dividend payments are invested separately every quarter, also up to six decimal places. Once enrolled in the plan there are no fees to purchase more shares.
With the reinvestment of dividends and optional cash investments your position in Exxon Mobil will continue to grow.
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