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Dripping for Dollars

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July 15, 2010 – Comments (5) | RELATED TICKERS: CAT , MSFT , WAG

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The Faux-Fool Drip Portfolio is back!

 

Faux, you say? Yes, well, my partner and crime (Todd Wenning, aka TMFPhila) and I haven't actually received any approval or acknowledgement from The Motley Fool for doing this. We are just trying to provide a service we think our fellow Fools out there want.

I firmly believe that everyone should invest. I also firmly believe that most people are darn near broke. Enter DRIP investing. Using a Dividend ReInvestment Plan we can build a portfolio a couple hundred bucks at a time. Additionally, we can do it without paying transaction costs and other fees that would kill the returns of our teeny-tiny investment sums.

So what's the deal?

Todd and I are combining our money ($2500 total) and our brain power (not a direct correlation to head size, by the way) to build a portfolio of five stock DRIP portfolio. We plan on chronicling the entire process, from researching the companies, to following earnings and reporting our performance for all the world to see on Fool.com. I'll write on this blog about the goings on too (and Todd will do the same on his CAPS blog). So follow along for the ride - invest along with us if you dare, and don't be afraid to chime in with your two cents about our analysis or general questions you may have.

If you aren't familiar with DRIPs, check out this site.

Check out our first article on Fool.com. Expect an article a week or so for the beginning - after that we will follow our companies and update as necessary.

The next step is for us to whittle down our portfolio candidates. Todd got things started by listing six of his favorites: Caterpillar, J.M. Smucker, Tiffany, Microsoft, Chevron and Walgreen. For next week's article I'll be submitting my six finalists. Be there or be square.

 

Bryan

TMF42

5 Comments – Post Your Own

#1) On July 15, 2010 at 3:30 PM, TMFDeej (99.46) wrote:

Cool idea, Bryan.  I'm looking forward to seeing how this project unfolds.  FWIW, my favorite of the six stocks that Todd submitted is Walgreens.  Coincidentally, WAG just raised its dividend by 27%.

Deej 

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#2) On July 15, 2010 at 4:41 PM, TMF42 (96.07) wrote:

Deej - keep your eye out for next week's article which will include my six portfolio contenders. Surely they'll be better than Todds six :)

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#3) On July 15, 2010 at 7:22 PM, blesto (31.64) wrote:

May I nominate a few candidates?

The following 3 companies have DRIPs

Snap-On (SNA)  Have consistently increased the dividend since 1996 What I really like, "Investors may purchase stock directly from the company and increase their investment through a no-commission dividend reinvestment and direct stock purchase plan. All fees and brokerage commissions in connection with the purchase of stock through the Plan, as well as most administrative costs, are paid by Snap-on."

AT&T (T) Through all their troubles have maintained that dividend. I was grandfathered in with my Bellsouth DRIP and only have fees if I sell. To start anew you have some reoccuring fees. So that might make you hesitant on them.

H.J.Heinz Co. (HNZ) They sliced their dividend in 2003 but they have since raised it past the previous high mark. HNZ only has an initial &5 fee to enroll. Other fees and comissions only when you sell. Run by Wells Fargo

Wells Fargo makes it easy to enroll in many different companies' direct purchase and reinvestment plans.

DRIP, drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip drip...

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#4) On July 21, 2010 at 2:28 PM, truthisntstupid (94.09) wrote:

www.computershare.com

www.stockbny.com

www.shareowneronline.com

www.amstock.com

www.adr.com

www.citibank.com

www.adr.db.com

www.rtco.com

 

 

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#5) On July 21, 2010 at 4:12 PM, truthisntstupid (94.09) wrote:

The above is a list of major transfer agents companies use to administer their plans.  Of these listed, I like the first four because they're the easiest to use.  I've found the last four to be literally useless to me.  I know Citi offers direct stock purchase plans and DRIPs but trying to figure out how to make their site give up a list of companies is an exercise in frustration.  I listed them all anyway.

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