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View Full Version : Anyone use DRIPS?

Rdline1
07-15-2005, 10:01 PM
My dad has been buying stock through drips for years....anyone else? I have some in Proctor and Gamble, and will soon be getting Exxon Mobil.
POLLO
07-16-2005, 03:05 AM
Just out of curiosity, I started investigating in Drips a good 6 month ago. Would you care explaining the procedure and what's the difference between the other ways of buyign stock.

Is this somethign any individual can do ? And is it buying the stocks from the company directly ? is that correct ?
Amortized
07-16-2005, 03:05 AM
drips are an excellent option for those wanting to buy just a few stocks here and there. been meaning to get into drips for a couple years but always procrastinated.
_Charles_
07-16-2005, 03:34 AM
OKay...please explain or link to explanation of DRIPS. Males me think of 'Droopy Dicks', but this is the investment forum, so I am sure they are not related.

Charles
Strokd85
07-16-2005, 08:50 AM
DRIPS = dividend re invesment plans.
Basically buying stock for long term investment.
Say you own a share of Exxon, they offer a plan. You can join their plan, (many have auto withdrawl options, etc) pay what you want per month and when their purchases happen for the DRIPS, they "buy" your stock based on what you have in your account. When dividends are paid out, they are "re-invested" into your account. Some have minimums that you need to have invested or this can be bypassed if you do an auto=withdrawl from your banking acct. Looking to do this for additional retirement income since social security won't be around...

been meaning to get into them as well, good book to read by Charles Carson explains the process well "Buying stocks without a broker". I've just had to put off my investing a little bit due to the kids, but really want to get back into it. When my wife starts working again in January I'm going to start putting together a portfolio.
Rdline1
07-18-2005, 01:01 AM
basically its an easy way to buy stocks directly from the company without having to pay a broker, and you can get in with VERY little money, sometimes there is no minimum buy-in. there are LOTS of big name companies available as well.