A number of Drips permit investors to buy stock at discounts to the current market prices. Discounts are usually three to five percent but may be as high as ten percent. Investors have the right to buy attractive blue chip stocks when they
otherwise might not be able to afford them. Discounts apply only to shares purchased with reinvested dividends, some apply the discount to purchases made with optional cash payments. The main benefit of buying stocks directly from the company either through a Direct Stock Purchase plan or a DRIP program is that the investor doesn't always have to pay a commission when making a purchase as you do with most brokers.