Anyone with knowledge of, and/or experience w/DRIPS?

[bliss_eternal]

I was thinking about getting this newsletter so I can learn more about them (drips)...

http://www.dripinvestor.com/index.asp

Good idea? Not good idea? Any experience, opinions, etc.?

Thanks! :hi:

[scruffy]

1. DRIPS are not that big a deal . . ..

They just automatically invest your dividends in additional shares of the stock that produced the dividend in the first place. So if you own shares of GE and GE pays a dividend, the dividend automaticallly buys more shares of GE. Depending on the size of the dividend and the cost of the stock itself, you might end up with a couple more shares or with just a fraction of a share . .. if the share price is high and the dividend is low.

This is really basic and I'm surprised there is actually a newsletter about it. From what I saw on the website, you can almost read the FAQs and know all you need to know right from there.

[bliss_eternal]

2. Welcome to DU, scruffy!

:hi:

Apparently I asked because it isn't basic for me--seeing as I'm trying to learn. But thanks for your information and taking the time to point out how basic drips are and that they aren't a big deal--to you. That's good to know, depite the manner in which that was conveyed.

Unfortunately, I'm not as financially savvy as you apparently are--and tend to have a major block in regards to numbers, math, etc. I was under the impression the newsletter would be helpful information for one to know what drips are available for public sale--as not all companies offer them, and also telling one how to do that.

I could be wrong, of course. Maybe someone else that doesn't share your contempt for such a newbie question of basic information would be willing to convey an opinion of this--or maybe the reason no one has bothered to answer my question is because it is so basic. Interesting.

Oh well--live and learn, I suppose, may be a reason this forum doesn't get much traffic, if those that aren't 'experts' are offered such condescending advice... But again, thanks.

It's my sincere hope that you are responded to in a more positive light in your time on DU than you did to me today.

[scruffy]

3. I am very sorry . . .

it was not my intent at all to be condescending, although I can see that my response could be interpreted that way.

Assuming the newsletter is offered for a reasonable price, it may very well be able to provide you with the info you are seeking so you can learn about this way of making investments. Best of luck!

[MsTryska]

4. If you're a fledgling investor,

then jsut go with something liek Sharebuilder. they reinvest your dividends for you.


you don't need an expensive newsletter to tell you how to do it.


also - if you really want to learn investing - look for the free stuff - ie books about investing from your local library.

two personal favorites of mine:

The Frugal Investor by Scott Spiering

And the Only Investment Guide You Will Ever Need, by Andrew Tobias (a very good democrat)

[scruffy]

5. Another good book . . .

The Truth About Money by Ric Edelman

[bliss_eternal]

8. Hi MsTryka--

I really appreciate your advice! I've got a library book I need to return, while there I'll check out the Spiering and Tobias books.

I apologize that I didn't see this post until today. Thank you for responding to my newbie query. Is everyone dumping their stocks these days, fearful of the stock market crashing?

:hi:

[REP]

11. Hell No! All Mine Are Going Up!

One went up 43% today. Wish I'd bought more last week!

[MsTryska]

14. what went up 43%?

please share - i'm really curious.

[REP]

15. TZOO - Up Another 18% Today

[MsTryska]

13. Well Welcome bliss_eternal!

as far as i know people aren't dumping. Gold is going gangbusters tho.

The best bet is to diversify (Tobias' book speaks of this a lot).

Other than my usual stocks, which are relatively economy-proofed, I try to keep a stake in Foreign Interests and in the Bond market as a hedge.

[electron_blue]

6. I also like the Motley Fool books - one of theirs addresses Drips

and you can check them out from the library, like I did.

To me, the hardest part of buyin stocks or funds is deciding *which* ones to get (and not all stocks have dividends, btw). Beyond that, it seems (in my case, since I'm not retired, or near retirement) that re-investing the dividends is a simple decision.

[bliss_eternal]

10. Scruffy and electron blue--

thanks for the book recommendation! I do appreciate it! :hi:

[REP]

12. For What It's Worth

I didn't take Scruffy's post to be rude or condescending - and it did a good job of explaining DRiPs. It did sound as though s/he was contemptuous of an expensive newsletter that was taking advantage of inexperienced investors (like me!) - not the inexperienced investor. I don't speak for Scruffy, of course - just giving my impression, which is worth the paper its written on.

[thoughtanarchist]

7. check out equiserve (compushare)

They allow you to participate directly in the drips of @ 450 companies.

Some of these are free to join and free to reinvest the dividends and cost as low as $5.00 to sell!

This is a bargain basement way to build positions on the cheap.

Read the plans carefully though as the drip plan is different for each company.

[bliss_eternal]

9. Thank you for the tip on Equiserve--

I appreciate it! :hi: I'll check into them--they sound good.

[trof]

16. I think ANY brokerage will re-invest dividends for you.

With Schwab, you just check the box that says "re-invest dividends" and it's done every time a stock pays one.