Darla decides to start buying stock in Disney and Kellogg Corporations on a regular basis. She is

Question:

Darla decides to start buying stock in Disney and Kellogg Corporations on a regular basis. She is trying to decide between using a Dividend Reinvestment Plan (DRIP) offered by the companies or purchasing the stocks through a discount broker. She asks your help in researching the two companies DRIP plans online and comparing their cost as it relates to fees, minimum investment, and monthly deposits.

a. If planning to invest $500/month, should Darla go with a DRIP or a direct stock purchase via a discount broker? Why

b. If planning to invest $100/month, should she choose a DRIP or a direct stock purchase via a discount broker? Why

c. If investing in only one company DRIP plan, is one company DRIP plan a better option over the other if Darla plans to deposit $500/month vs. $100/month? Which one and why?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...