Originally Posted by charlottebandito
Ok, I'm just learning the "new" concept of Dividend Investing and DRiPs have been reviewed here previously.* I was wondering what your thoughts were on the ETF (DVY) Dow Jones Select Dividend Index that seems to be a basket of 50 highest paying divvy stocks comprised of the DJ Total Market.* What are some thoughts on using that as a Dividend Investing vehicle (broker reinvests divvies for free) for a taxable account?
Obviously that would help tremendously with paperwork that everyone seems to convey here, but would that be a great option other than DRiPs?* I'm going to be purchasing more books on the subject of Dividend Investing.
I'm 33.* Thanks guys.
If you can buy your initial DVY shares for under $10 AND if your broker will invest the div for free, it is a no brainer. I'd do it. I've owned DVY for about 8 months.* Three nice 4% plus div, and I wrote calls on two occasions for an extra kicker.* My broker will not reinvest the div for free, so I just take the cash and use it elsewhere.
I love the DRIP concept also. Key thing here is to find plans that don't nickel/dime you to death.* CIN is one of my favorites. Been doing it for many years. Total cost?* zero.
Here's a list of good stocks that do drips.* I haven't looked at their fees lately so I can't comment on the costs, but the stocks are quality.
The table below highlights 15 quality stocks that offer direct-purchase plans. Each of these firms will waive its initial minimum if an investor commits to automatic monthly investments. Interestingly, to make the minimum automatic investment in each of these 15 companies would require a total monthly commitment of $650.
To join the direct-purchase plans for these companies, obtain enrollment information by calling the toll-free numbers provided.
Stock Min. Initial Investment Min. Auto. Investment Contact
Allstate ALL $500* $50* 800-448-7007
Altria MO 500 50 800-448-7007
Bank of America BAC 1,000 50 800-842-7629
Best Buy BBY 500 50 877-498-8861
Cash America CSH 250 50 800-842-7629
ConocoPhillips COP 250 25 800-842-7629
ExxonMobil XOM 250 50 800-252-1800
Guidant GDT 250 50 800-448-7007
Medtronic MDT 250 25 888-648-8154
Merck MRK 350 50 800-831-8248
Microsoft MSFT 1,000 50 800-842-7629
Nike NKE 500 50 800-448-7007
Questar STR 250 50 800-729-6788
Staples SPLS 250 25 800-842-7629