Investing in individual companies can be an excellent way to build wealth over time and support the businesses that you believe in. Buying stocks directly from a company, also known as a direct stock purchase plan (DSPP), offers several advantages over purchasing stocks through a broker. DSPPs can provide lower fees, allow for automatic investments, offer unique perks, and support the company directly.
DSPPs have been around for decades, with some companies offering them since the early 1900s. These plans gained popularity in the 1950s and 1960s as a way for individual investors to buy stocks without going through a broker. Today, many publicly traded companies offer DSPPs to their shareholders, giving investors the opportunity to invest directly in the companies they believe in.