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DRIP Investing
Vs.
Traditional Brokerages

 

  The chief foil to investing success is the tendency to react emotionally to day-to-day stock price movements. Should you buy on the dip or sell? You won’t know until it’s too late.

 

The ease of action in a brokerage account entices you to act. With DRIPs, investors establish a plan to build holdings by making scheduled (or unscheduled) investments over a period of years until the dividends alone keep the account growing. This subtle difference accounts, for the success-advantage DRIP investors enjoy. 

 

The ability to diversify and to invest dollar amounts (instead of buying shares) makes the difference.  

 

If you want to end up with a lower cost per share than the average price of the shares during the investing period, you don’t want to be buying the same number of shares regularly—but you do want to invest the same amount of money. The difference will become clear as you read on. (A few traditional brokerages are now adopting measures to provide this advantages but it’s easier to implement in a DRIP portfolio.)

 

Here’s why those are two critical factors:

 

Diversifying among market sectors is an uncontested risk-reducing strategy. Diversifying holdings within a traditional brokerage account, where you generally buy in 100 share lots, is more limiting than diversifying among DRIP companies, where a small dollar amount is all you need to open an account (or as a shareholder by owning even a single share of company stock). 

 

Buy more, low--and less, high.


Read More

 

     

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    Dear DRIP Investors,


    We have been helping people enroll in DRIPs since 1986. Many of our subscribers have written to express their thanks and describe the outcome of their DRIP investments. It has been a source of pride and our great pleasure to have assisted in your efforts to secure financial security.


    However, after 35 years we have decided to stop fulfilling orders for enrollments after the March cycle. Moneypaper, via the directinvesting.com website, will continue to provide information about DRIPs and the enrollment process.


    As always, good luck,

    Vita Nelson


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    Stocks by the Slice???

    Invest in a Different Way???

    We've been helping investors do that since 1986. But it's still . . .

    Wall Street's Best Kept Secret

    Get Rid of the Broker.

    Make Cash Investments into your own account on the company books.

    NO BROKER IN BETWEEN

     

    DRIPs vs Brokers

     

    No Fee DRIPs

    Hold shares in your name.

    Don't save up to buy from a broker. Instead, invest however much you have on hand.

     

    Get as many shares or fractions of shares--depending on the share price and the amount you invest!

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    Here's why we love DRIP stocks

    DRIP Index: MP63
    DRIP Stocks Compared with the Market from index inception, 01/01/1994, through 05/22/2017
      1/1/94   Current % Change
    MP 63 100.00 1208.48 1108.48
    MP 63 Industrials (52) 100.00 1275.58 1175.58
    Dow Jones Industrials 3754.09 20894.83 456.59
    S&P 500 466.45 2394.02 413.24
    NASDAQ Composite 776.80 6133.62 689.60
    Russell 3000 270.13 1417.54 424.76

    The 63 DRIP stocks that made up that index became, in 1999, the original component companies of the MP63 Fund (DRIPX).


     

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