DRIP programs

[MYellowRose]

Is anyone here investing in or interested in investing in a dividend reinvestment program for stocks? I'm looking into several companies I'm interested in and hoping to start investing next month. Want to leave the kids and grandkids a little something when I go.

[gypho]

MYR, pm me, please.

gypho

[MYellowRose]

Just thought some of you might like to know that you can buy stock in Exxon/Mobil for $50 a month for 5 months provided you allow them to automatically deduct it from your checking or savings account. Or you can just send them $250 directly and invest in their dividend reinvestment plan. Call 1-800-252-1800 for info on their dividend reinvestment program, ask for a prospectus and application if you're interested.
Wal-Mart, yes I know many of you don't like it or shop there, has a similar plan except that their monthly deduction would only be $25 for 10 months. Their number is 1-800-438-6278 and you again ask for a prospectus and application for the dividend reinvestment plan.
These are the first two major companies I intend to invest in. They are two of what Charles B. Carlson calls "no-load" stocks, in other words you can purchase them directly from the company itself.

[Michael32170]

There are several tracking stocks that invest in dividend paying stocks. One symbol is DIV.

[Michael32170]

You can search for stocks at several sites. Here is one of the better sites.

http://moneycentral.msn.com/investor/finder/predefstocks.aspx

Note, you have to use MS Internet Explorer to use this site.

[gump]

There are several tracking stocks that invest in dividend paying stocks. One symbol is DIV.



These are Closed-End Funds - or CEFs. Most hold some sort of underlying security, whether it be bonds or stocks, and also leverage the investments to provide a higher payout. Most trade at a discount but does not necesarily mean it's a good deal. Leverage isn't always such a good thing to have in most cases. Be careful & always watch the expense ratios (some can be way too high)! I would prefer a dividend focused ETF over the CEFs.

I would check your local library. Some carry the Mergent Dividend Achievers Index newsletter and/or some dividend newletters with weekly/monthly updates. It's free and worth a check. If you could get your hands on either, it would be a great place to do research and use as a reference.

[mangyhyena]

QUOTE: Wal-Mart, yes I know many of you don't like it or shop there, has a similar plan except that their monthly deduction would only be $25 for 10 months.:Quote

Walmart stock is a fairly solid stock to invest in. I work there, so I get to purchase some every 2 weeks.

(As for those who blame Walmart for all the woes in America, I have a few harsh realities to post if you all would like to get into it. And it would be coming from the horses mouth for a change, instead of one side or the other of your local politician's mouth. Either begin a new thread or request I start one if interested in a different POV about Walmart.)

I mention this about their stock because I have a theory about Walmart stocks. Years ago I worked for Walmart for a 7 year stretch. (Yes, I work there again.) During that first 7 years, I watched their stock go from $12 per share, go to $150 and split, then go to $160 and split again. I was young and did not invest, which I could kick myself for.

I realize that hindsight is 20/20, but I think I know why it went up the first time and I believe I see it happening again.

Back then Walmart was building a lot of new stores. They did not borrow money to build them but instead took the expenses out of the gross, which left a smaller profit to show each year they were building. I believe they built around 500 new stores in a 5 year period back then. Once the stores were built they had not only the money they were dumping into all construction of the new stores, but the income from those new stores to show in a much higher profit.

It is like an artificial devaluing of stock while expanding, then Ka-Boom, suddenly higher profits.

At this time Wal-Mart is on a 5 year plan to build 1,500 new stores. And again, they're taking it out of the gross to do it. I believe the same thing will happen again. I believe stock prices will skyrocket and max out (hit its highest point) in the next 7 or 8 years.

So if your looking for stock for a longer term investment you might consider Walmart stock.

[MYellowRose]

MangyHyena I'm still debating on who to buy into first. I'll probably go with Wal-Mart for the simple fact that their cost is $25 a month for 10 months and with any luck I should be able to continue to let them take that much out monthly for at least a couple of years. I do need to make sure that they will take the money from my account within the first 5 days so I don't get overdrawn and charged another $25 by the credit union. Some of the places want to take the money out on something like the 20th of each month and by then I am flat broke. I may just put away the money monthly until I can send it all in at once. I'll probably do Procter & Gamble next as I want to invest in companies that I know and where I like to do business.

[gump]

I recommend WAG - Walgreens. I worked there before I got my new gig in finance and I think they are one of the two best retailers in the country. Very smart people. They plan to roll out 10,000 stores which is roughly double current count and I take them over WMT.

[MYellowRose]

Thanks for the suggestion Gump. I am printing out the contact info for buying stock in Walgreen's and joining their DRIP.

[ryanmercer]

Thanks for the suggestion Gump. I am printing out the contact info for buying stock in Walgreen's and joining their DRIP.

I just mailed mine today :)

[AgnesNutter]

I recommend WAG - Walgreens. I worked there before I got my new gig in finance and I think they are one of the two best retailers in the country. Very smart people. They plan to roll out 10,000 stores which is roughly double current count and I take them over WMT.

Like WalMart, Walgreens is basically another cash-based business; they use their current cash/income to fuel growth, rather than debt.

My dad worked for Walgreens, and cleaned up on stock options. He now works for Walmart, and I expect he's participating in their Employee Stock Purchase program.

Hopefully those stocks continue to soar, offering my parents a quiet, worry-free retirement pottering in the garden and going to Arizona in winter. May they enjoy it; I don't plan on inheriting one red cent from them. Heck, I'll count myself lucky if we kids don't have to foot their nursing home bill. ::)

[Thomas]

MyYellowRose, was the Walgreens DRIP sale handled by the same outfit that has the Walmart or where did you find it? Thanks

[ryanmercer]

MyYellowRose, was the Walgreens DRIP sale handled by the same outfit that has the Walmart or where did you find it? Thanks

Same place... computershare

http://www-us.computershare.com/investor/DirectStockPurchase.asp?Coy=2019314220

[ryanmercer]

I don't get it! Why would you use computershare instead of....say Etrade?

Computershare has DRIP's... as far as I know etrade you are going to be paying a fee every time you want to buy stock. With computershare you only pay a nominal fee to set up the account, and then when you want to sell.

[gump]

Probably not a good time to be in ACAS - anything related to financing/banking/etc. is getting killed and could be very volatile in the short-term. On the + side, some insiders have been buying.

[Southern_Gent]

I would advise caution when dealing with Etrade. If you're a long-term investor, like me, Etrade will nail you with dormancy fees every few months if you're not continuously buying and selling.