Investing Drips

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Investing drips. Dividend investing is a means of building wealth over a long period of time with reduced risk many brokers offer fee free purchases and reinvestments and the ability to reinvest fractional shares. In fact hundreds of leading stocks offer no fee drips. Are among the hundreds of companies that don t charge fees to invest. Investors looking to buy stocks without a broker may wish to consider low cost or free programs known as dividend reinvestment plans or dividend reinvestment programs aka drips a drip account may be opened with a stock transfer agent or another sponsoring financial institution instead of going through a stock broker.

Moneypaper is your source for drip investing including information on the best direct investment plans and dividend reinvestment programs also known as drips use our wealth calculator to find out how much money you would have after certain time frames by making regular investments through direct investment plans drips. Many banks serve as drip agents and many investors also facilitate drip. Automatically invest without having to think about it company operated drip plans allow investors to buy shares directly from the company and in exchange dividends are automatically reinvested in the company s stock sometimes at below market prices. Drips use a technique called dollar cost averaging intended to average out the.

Dividend investing is for the long term buy and hold type investor who wants to sleep at night while their investments steadily build. Drip investing has some big advantages for long term investors both in terms of reducing investment costs and making the investment process more efficient and effective there are also a couple of. To entice investors to use drips issuing companies typically offer very low fees to participate in the program. A dividend reinvestment plan drip is an arrangement that allows shareholders to automatically reinvest a stock s cash dividends into additional or fractional shares of the underlying company.

Over twenty years of success and still going strong. Twenty eight years ago i wrote the first issue of drip investor when i survey the more than 20 years since that first issue a lot has changed in drip dividend reinvestment plans investing much for the better for example in that first issue in 1992 there were less than 10 companies that permitted investors to. As the name implies these companies do not charge fees for investing or reinvesting dividends to buy additional shares. A drip is a dividend reinvestment plan whereby cash dividends are reinvested to purchase more stock in the company.