Would someone please clarify what the op is saying, I'm confused.
The OP has opened up a UTMA (Uniform Transfers To Minors Act) account for his son. This means he's basically opened up an a custodial account, since the boy is too young to legally own an account himself.
Within that account, he has opened up several DRIP (dividend reinvestment program) accounts. Those are accounts set up directly with a company to buy their stock. As you might expect from the name, the dividends are reinvested into additional stock instead of being disbursed to the shareholder in cash.
The nice thing is that it's a relatively painless way for compounding to do its work (set it and forget it). The benefits can potentially be quite high. The OP has already outlined the drawbacks, which are many.JD's GRS post on the July 23rd, 2008
contained a nice little intro to DRIPs.