Billionaire investor George Soros said it best: “Good investing is boring.” Two great examples: dividend reinvestment plans (DRIPs) — an automatic way of building wealth that most investors ignore — and the S&P 500 Dividend Aristocrats. Let’s take the second one first. Many of the 50 companies on the Dividend Aristocrats list peddle everyday staples like tape, telephone service and over-the-counter drugs—products that are about as humdrum as you’ll find.
DRIPs let you use your cash dividends to purchase additional shares in a company (and even fractions of shares; more on this in a moment) without paying commissions. That means your cash buys its full weight of shares. Under a DRIP, the company simply reinvests your dividends instead of cutting you a check. That leads to a very happy cycle: as you buy more shares, you generate higher dividend payments—which you use to buy more shares. 3 Great Dividend Aristocrats With DRIPs: 3M Co. (MMM), Johnson & Johnson (JNJ) and Hormel Foods (HRL).
Source: InvestorPlace
Related Articles:
- Finding Low Risk Dividend Stocks
- 10 Fun Facts That You Might Not Know About Microsoft
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
- 5 Low Beta, Higher Yielding Dividend Stocks For The Next Downturn
These 3 Dividend Stocks Can Make You Rich DRIP by DRIP
Posted by D4L | Saturday, April 09, 2016 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
Sure, if you can invest without any emotions and high blood pressure, you will probably make better decisions.
PS. Some investors are not satisfied with "Good" :)