As with everything, DRIPs have their disadvantages.
Normally, purchasing stocks must be done through a broker. Dividends have been added to the total return of the index. Investing in DRIPs limits your flexibility to some extent. Robert LenznerSteven Drobny reveals insights from the hedge fund all-stars. In his book Common Stocks and Uncommon Profits, legendary investor Philip A. Fisher stated that a large amount of diversification can be found even when investing in a small handful companies. As with everything, DRIPs have their disadvantages.