From the article: Reasons to Love Dividend Reinvestment Plans or DRIPs
Dividend reinvestment plans, or DRIPs, often let small investors buy stock directly from a company with little or no brokerage commissions. They can setup automatic investments and have money taken from their bank account each month and even request stock certificates if they would rather park them in a local safe deposit box instead of keeping them on file with the transfer agent. What do you think of DRIPs? Given that they save so much money and let you invest tiny amounts, often as low as $25 to $50 at a time, do you think more investors should be using them? Share Your Thoughts
Dividend Reinvestment - Great Idea
- Picking the right dividend paying stock is important. A stock that has paid dividends consistently over many years with increasing amounts is the first thing to look at. Also, look for company that has increasing revenue to support the payments. DRIPs are a good way to invest when money is tight. Just be consistent & stick to it.
- —Guest Jane
Dividend Reinvestment
- I like the idea of using D.R.I.P I want to educate myself on them and plan on using them and giving some to my kids as gifts
- —Guest Sandra
I've Used DRIPs for Years
- I own about half a dozen different stocks through DRIP accounts and it was the best thing I ever did. The money comes right out of my checking account each month, some don't charge me any commission (those that do it's almost always $1 or $2 at most), and I get statements every few months telling me how many shares I own, my dividend income and how many more shares of stock my reinvested dividends bought me. I'm glad to see you are highlighting these on the site! They can be a great way to save money and begin investing if you don't have a lot of cash sitting around.
- —Guest Timothy
