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| e_pang |
 Posted: Wed Nov 15, 2006 3:50 pm Post subject: Any one have any good drip investments that I could look for |
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Investing Sr. Associate
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I am looking for a drip investment! Could anyone point me in the right direction of where I could go directly to get more information or to sent something up like this?
Thanks |
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| efflandt |
| Posted: Wed Nov 15, 2006 9:30 pm Post subject: |
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Investing Manager
Joined: 01 Oct 2005
Posts: 202
This Month: 3
Location: Elgin, IL USA
75109.65 e$
Net worth: 184,783.65
Portfolio Value: 109,674.00
Monthly Return: 1.93%
Trades this month: 0
Churn Rate: 0.00%Items
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For a taxable official DRiP you usually go to the website of the company you are interested in, and find out who their stock transfer agent is. Then you set something up with them. One of the ones I used had a $15 charge for initial stock purchase, then only $2 for each additional stock purchase (with electronic funds transfer). No charge for dividend reinvestment (or maybe a few cents if not covered by the company whose stock it is).
If they require that you own their stock first, you can get that at some place like sharebuilder.com.
Or many brokers will do a pseudo DRiP at no charge (Fidelity does). That is probably what you would have to do for dividend reinvestment in a retirment account. |
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| WDiJohns |
| Posted: Thu Jan 17, 2008 10:48 am Post subject: |
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Investing Associate
Joined: 17 Jan 2008
Posts: 17
This Month: 0
8470.31 e$
Net worth: 11,364.17
Portfolio Value: 2,893.86
Monthly Return: -2.13%
Trades this month: 0
Churn Rate: 0.00%Items
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| Yeah, Fidelity, E*Trade, and Sharebuilder offer no charge DRIP programs that are highly useful in saving you commission fees and compounding your investment return. |
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| MEDIC1FF |
| Posted: Tue Jan 22, 2008 4:25 am Post subject: |
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Investing Sr. Associate
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| WDiJohns |
| Posted: Wed Jan 23, 2008 12:26 pm Post subject: |
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Investing Associate
Joined: 17 Jan 2008
Posts: 17
This Month: 0
8470.31 e$
Net worth: 11,364.17
Portfolio Value: 2,893.86
Monthly Return: -2.13%
Trades this month: 0
Churn Rate: 0.00%Items
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A DRiP is a Dividend Re-Investment Plan - which allows you to reinvest dividends automatically, typically for free.
Say you own a few shares of Goldman Sachs, it pays a dividend of $.35 four times a year for a total of $1.40 a year. Now unless you have quite a bit of money to throw around and are able to buy 50-100 shares, this is a pittance - you are probably getting significantly less than $50 a year. So why collect checks for $5 (figuratively) then wait till you have enough to buy more shares and pay another commission fee when you could have the dividends reinvested for free? You'll only get a fraction of a share but it still pays a proportionate amount of the dividend (1/100 of a share pays 1/100 of the dividend). Also, the system is a form of compounding since next time a dividend is paid you get the same amount as last time + whatever that fraction of a share yields you. |
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| MEDIC1FF |
| Posted: Fri Feb 01, 2008 5:02 am Post subject: |
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Investing Sr. Associate
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| Thanks for the explanation. |
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