More than 300 companies in the S&P 500 offer DRIPs as do 27 of the 30 companies in the Dow Jones Industrial Average. Surely individual investors can find a stock that meets both their investment goals and risk tolerance.

What? You don't have the 30 stocks in the DJIA memorized in reverse alphabetical order? Then go to www.valueline.com/dow30 to see not only the list of stocks in the DJIA but to print out the latest Value Line analysis of each. Read the analysis to see if a stock meets your criteria for investment.

Here is an analysis of some advantages to DRIPs, as well as disadvantages, followed by how to get started.

ADVANTAGES:

1. DRIPs are low cost. Investors buy shares directly from the company, or its agent, thereby avoiding broker commissions. There is a modest (approximately $10) start-up fee in addition to the minimum initial purchase. Some DRIPs allow investors to open a DRIP account with an initial purchase as low as $100.

2. DRIPs are meant to be for the long haul. Investors can make small monthly investments to purchase shares. DRIPs allow automatic deduction from a checking account so that an investor can invest the same amount regularly each month. Investors can use the dollar cost averaging method when purchasing shares, buying more shares when the price is lower, fewer when the stock price increases. Note that automatic monthly deduction is NOT mandatory. Investors can invest as little or as much as they choose. The advantage of a monthly investment is that even small stock purchases accumulate over time.

3. DRIP accounts are very easy to set up. Many companies have DRIP or direct stock purchase information on the company website. Simply print out the one page application, fill it out, enclose a check or give the necessary information for automatic deduction, and mail it off. A few days later your DRIP account is open and you have purchased your first shares. All subsequent dividends are normally reinvested at low or no cost.

4. Shares in DRIP accounts are fully liquid. Should an investor wish to sell shares, merely submit the termination form or call the program's 800 number. A check or automatic deposit will be sent shortly.

5. Investors will receive an account statement, if they so choose, once per month or once per quarter. Many DRIPs offer full digital record keeping. DRIP investors can vote just like other shareholders and receive all quarterly and annual reports.

DISADVANTAGES:

1. DRIPs are low cost, low maintenance, but, they are self-directed. There is no broker to offer advice.

2. Some DRIPs purchase shares once per week, some once per month at regularly stated times. Investors receive no interest on funds received by the plan and held until the next purchase date. DRIPs are not for foolish people trying to time the market.

3. Not all publicly traded companies offer DRIPs or direct purchase stock programs.