Fashion had dividend stocks go out of style for sundry reasons. Now they're back and most logical to buy. DRIPs went out of fashion also for various reasons. Now they're back again. Our author here, Ganesh Kumar, has several good points, as far as I can tell, and they are well explained. DRIPs provide good things such as dollar cost averaging as well as consistency and self-discipline in investing if one sets up an automatic withdrawl from one's checking or savings account. (Some DRIPs are as low as $10.00 minimum a month--and in great stocks.) There are no fees from many company that provide DRIPs and, in my opinion, forget about getting a DRIP from the ones that charge a fee. The fee probably should be of concern for the small and frequent investor, that's something commentor number one above is not taking into consideration. DRIPs have a place in our stock portfolios, probably if we are of that apparently dying breed called buy and hold. Or is buy and hold the next idea to return from the boneyard of investment theories? I would guess it should return and perhaps investing will be more investing in companies and less gambling with investment money to make the fast buck. There is a logical good investment tool for each investor. To understand this investment tool I suggest those interested to go to their bookstore and purchase one of many books about DRIPs and also investing in dividend bearing stocks. All things old become new again it seems.
Now Is the Right Time for a DRIP [View article]
DRIPs went out of fashion also for various reasons. Now they're back again. Our author here, Ganesh Kumar, has several good points, as far as I can tell, and they are well explained. DRIPs provide good things such as dollar cost averaging as well as consistency and self-discipline in investing if one sets up an automatic withdrawl from one's checking or savings account. (Some DRIPs are as low as $10.00 minimum a month--and in great stocks.) There are no fees from many company that provide DRIPs and, in my opinion, forget about getting a DRIP from the ones that charge a fee. The fee probably should be of concern for the small and frequent investor, that's something commentor number one above is not taking into consideration. DRIPs have a place in our stock portfolios, probably if we are of that apparently dying breed called buy and hold. Or is buy and hold the next idea to return from the boneyard of investment theories? I would guess it should return and perhaps investing will be more investing in companies and less gambling with investment money to make the fast buck.
There is a logical good investment tool for each investor.
To understand this investment tool I suggest those interested to go to their bookstore and purchase one of many books about DRIPs and also investing in dividend bearing stocks.
All things old become new again it seems.