I phoned my broker and found out that in my spousal RRSP, well, I guess it’s my wife’s RRSP that I contribute to, to be more precise, there were many different stocks that offered Dividend Reinvestment vehicles.
I was surprised that pretty much all of the stocks that are in that plan have DRIP set ups, so of course I signed up for all of them. My reasoning was pretty simple:
- I’m lazy, and I don’t pay enough attention to my investments, so if they grew in quantity simply by me doing nothing, that is a good thing.
- I have a fairly large number of financial institutions as investments, and I think that is as safe as you can get it right now. My guess is there won’t be a “banking bubble” like the “hi-tech bubble”, although we did have one in the late 80’s with the Canadian Banks making many very speculative loans, that didn’t pan out. My guess is I am fairly safe with these stocks and if they continue to pay dividends (which they are), I get more stock, which creates more dividends, which is ok by me.
- If for some reason the stock prices soar for my investments (it could happen, just like I could find a winning lottery ticket), I still get the cash if the dividends can’t buy more stock.
Why the picture of my dog after he had his teeth extractions? Well, I can talk about that one tomorrow, but isn’t he cute? He sort of looks like a reverse RCA Victor dog (his Master’s Voice in reverse).
Other Dividend ReInvestment Program Articles
- Boy am I a DRIP ? OK a bit of a neophyte start to the discussion about DRiPs.
- Drip, drip, drip… a little more explanation of how I am using them.
- Dividend Reinvestment Update some of the work I have had to do to set up my DRiP .
- DRIPS: It Really Works! It has for me, mostly because I use them on Dividend All-Star stocks.
- DRIP: How’s that again? An attempt on my part to clarify what I said in the previous post.