![]() If the business is too hard to understand, stay away. The business should be a high-quality company whose products people use every day.Here are the characteristics to look for in a good business for your dividend reinvestment plan: When you combine these favorable attributes with annual dividend increases, you get a total return that has a good chance of beating the returns generated by the S&P 500 index. But the dividend yields are also attractive. They offer some attributes of a growth stock in that their earnings grow most years. The best DRIP stocks from the stock market today are very popular with dividend investors. This is done automatically at little to no costs to the investor.Ī dividend reinvestment plan allows you to dollar cost average the price at which you buy the stock of a company because you are making many small purchases of additional stock with the dividends you receive. More recently all major brokerage houses allow you to reinvest your dividends into more shares of a business you invested in. Companies offer these DRIP programs as a way of getting smaller investors interested in buying their stock. Historically if you wanted to enroll in a dividend reinvestment plan you had to open a DRIP program account with each company you were interested in. Think of these stocks as some of the best DRIP stocks right now and use them as a starting point for your research. We want to explore some of the best DRIP stocks for 2021 and beyond. But not all dividend stocks are worthy of owning, much less buying additional shares with your dividend payments. ![]() A dividend reinvestment plan (“DRIP”) is a way to accumulate additional shares of stock in a company by automatically reinvesting your periodic dividends into more shares.
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