Dividend-News
Daily dividend news for investors in dividend stocks
Dividends? Forget DRIP And Go PRIP
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Published Thu, 31 May 2012 15:07:37 -0400 on Seeking Alpha
For all I know, the proponents of the Dividend Re-investment Plan (DRIP) concept, who used to sell a simple booklet of all of the publicly traded companies offering such an investor option, are still raking in the big bucks from giving you that readily available information at a price. If memory serves me right, the sales pitch was actually the basis for one of the early generation infomercials, but there was none of the yelling that became popular as the genre evolved. When I first started investing I thought that was a great idea. Just have the company plow those dividends into say 0.29156 shares every four months, without incurring any fees. I thought it was great until I got to the point that I wanted to close out positions that held such fractional shares. Certainly, the pure math of re-investing dividends has to be favorable, if you are a... Read more


