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www.reallysimpleinvesting.com
Really simple investingDividend Reinvestment Plans (DRiPs)
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Learn More at: http://www.reallysimpleinvesting.com
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DRips
What is a 'Dividend Reinvestment Plan - DRIP'
A dividend reinvestment plan (DRIP) is offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. A DRIP is an excellent way to increase the value of an investment. Most DRIPs allow investors to buy shares commission-free and at a significant discount to the current share price, and do not allow reinvestments much lower than $10.
FromInvestopedia http://www.investopedia.com/terms/d/dividendreinvestmentplan.asp#ixzz4FtbbLzt6
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“So, I can’t really afford to buy a bunch of stocks, you need to be rich to do that.
What do I do to get started?”
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Good News, You can buy stock directly from the leading companies and even
buy fractional shares, with limited monthly contributions.
It’s called a Dividend Reinvestment Plan or Drip
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How to Start with Dividend Reinvestment Plan
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DRIP Advantages & Disadvantages
Advantages Can invest small or large amount
Compounding dividend increases
Stock price appreciation
Dollar Cost Averaging (OCP)
Basically Fee Free (50% of US co)
Stable Shareholder Base
Inexpensive Source of Equity $$$
DisadvantagesCan be Cancelled by Company
Inability to Time Market
Minimum OCP Amounts
Fees are Increasing (US)
Dividends are Taxable
Tracking Adjusted Cost Base
Odd Lots from mergers
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High Quality Stocks w/DRiPs
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Ok, those ideas are great, but I don’t want to take
the time to get all of those Dividend Reinvestment Plans set up, is there an
easier way?
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More good news, There are a number of
leading mutual funds that do all the work for you . . .
Examples include . . . .
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Dividend Mutual Funds/ETFs
Three of the best mutual funds for high dividend yields:
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Floyd Saunders Author: Really Simple Investing, Family Financial Freedom, College Without Ramen Noodles, Figuring Out Wall Street and other books
At Really Simple Investing we provide educational resources and offers unbiased product free seminars on financial planning, money management and investing.
Since 1996 we have providing clients with personal money management and investing training tailored to individual circumstances and objectives rather than advisor incentives or commissions.
Our workshops are product free – We only provide education.
Contact us at: [email protected]
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