I have about 00 to spare and deciding to invest in DRIPs b/c they do not require a brokerage account and I do not have a lot of money to invest in mutual funds or stocks.
1. I’ve read a lot about them but I am still unsure if they are safe. I am thinking about DRIP for Microsoft but as I was reading, I noticed that there are a lot of fees involved as well. What DRIP should i invest in?
2. I read that DRIPs are taxed yearly for every dividend received and I would have to maintain an accurate record. This seems to be a hassle and quite a disadvantage.
Don S 7:57 am on March 17, 2010 Permalink
May i suggest one of these 2 companies as a company to use in your DRIP Plan.
1. US Bancorp Have paid dividends for 145 years consecutively, and increased its dividend for the last 36 years consecutively.
2. McDonalds This is a solid stock That has over 31,000 restaurants around the world. Whether you like their food or not is irrelevant. It will be around for a long time.
3. Walmart Same scenario as McDonalds
Good Luck
pai 7:57 am on March 17, 2010 Permalink
Mutual funds, they say. Dont be in a hurry now.. Good luck
Russell G 7:57 am on March 17, 2010 Permalink
It is a fact that 75% of the Mutual Funds available underperform the market. You really need to know what you are doing if you are going to invest in Mutual Funds.
Plus, most mutual funds are load funds, not all, which means they have a nice management fee attached to them.
DRIP’s are wonderful. You can participate without much money. If you are in it for the long-term, you don’t care what the market is doing. And often times, you can purchase shares from a company at a discount for being a DRIP investor.
In my opinion, there is no contest. DRIP’s are a far better investment than Mutual Funds.