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Dividend Reinvestment Update

in DRIP, Investments

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:

Hi Fi Dog

Hi Fi Dog

  • 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).

{ 1 comment }

  • SMB May 15, 2006, 4:01 PM

    Love the picture of your pooch. I always feel so sorry for dogs when they have to wear those things, yet I can’t help laughing.

    Reply

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