DRIPS: It Really Works!
DRIP : Dividend Re-Investment Programs
So last year some time I finally got around to phoning up my stock brokers and asked to join the DRIP for every common stock that I owned and it has finally paid off!
What’s a DRIP? No it’s not this picture –>
DRIP is a Dividend Reinvestment Program, which most stocks typically offer you, so that you can buy stock with your dividend payments (instead of taking the cash). The cost of buying this stock is FREE, which is the best part, so I get more stock in something I already hold stock in AND I don’t have to pay any brokerage fees.
Doesn’t that sound like a good idea? Any left over moneys goes to my account, and typically you are only allowed to buy whole stock (i.e. you can’t buy 1.5 shares of XYZ).
The only problem I have run into, is that I usually didn’t own enough common shares to get a large enough dividend to buy a share when dividend time rolled around, but this time two of my stock came in!!! Whoo Hoo! I own 3 more shares! Not much? Well, we’ll see, but it’s a start!
More Carnivals
Fire Finance is hosting the 60th Carnival of Investing where my Einstein’s Rule of 72 posting is mentioned as well (Einstein Finance).
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