A DRIP is the best stocking stuffer around

Help change someone's life by setting them on the path of wealth accumulation.

By MoneyShow.com Dec 17, 2013 9:53AM
A bird nest full of money © David R. Frazier Photolibrary, Inc., AlamyBy Chuck Carlson, DRIP Investor

Anyone reading this has the potential to effect real change in people's lives. How, you ask? By introducing them to the power of investing via dividend reinvestment plans. I know this may sound a bit, well, over the top. Well, I'm not embarrassed to say that dividend reinvestment plans changed my life.

DRIPs fit my limited pocketbook -- I could buy quality stocks with amounts as little as $50 or $100. And dividend reinvesting helped put some of my investing program on autopilot.

Once I started, I wanted more. I started finding more money to put into my DRIPs. I started adding new DRIPs to my portfolio. And I started thinking about my future. And before I knew it, my life had truly changed for the better.

We are entering the holiday season, which means you will be searching for gifts for the young people in your lives. Why don't you give the gift of DRIPs? I guarantee you it is the best stocking stuffer you can give someone.MoneyShow.com on MSN Money

And it won't require a lot of money. The companies below allow any individual to buy the first share and every share of stock directly from the company. All of the stocks have minimum initial investments of $100 or less and rank among my favorites.

American Water Works (AWK) -- yielding 2.7 percent, minimum $100
Cincinnati Financial (CINF) -- yielding  3.2 percent, minimum $25
CVS Caremark (CVS)  -- yielding  1.4 percent, minimum $100
Dominion Resources (D)  -- yielding  3.4 percent, minimum $40
Domino's Pizza (DPZ)  -- yielding  1.2 percent , minimum $65
Eaton (ETN)  -- yielding  2.3 percent, minimum $100
Flowserve (FLS)  -- yielding  0.8 percent, minimum $100
Kellogg (K)  -- yielding  3.0 percent, minimum $50
New Jersey Resources (NJR)  -- yielding  3.7 percent, minimum $100
Quest Diagnostics (DGX) -- yielding  2.0 percent, minimum $100
Tim Hortons (THI) -- yielding  1.7 percent, minimum $25

Interestingly, you can take initial positions in all 10 of the highlighted stocks with just $765. Now that's the type of "starter" portfolio that could end up changing the life of a loved one.

If you are new to DRIP investing, treat yourself to a few DRIPs this holiday season. Trust me, it’ll change your life.

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16Comments
Dec 17, 2013 10:42AM
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I like DRIP plans, but there are a couple of things to consider.  It's much, much easier to do them within a tax-free account like a Roth.  If you don't, trying figure out the tax liabilities can be an awful task.  If you're talking about a company that gives 4 dividends a year - you're acquiring fractional share amounts of  varying values 4 times a year for possibly decades.  Determining your capital gains on that can be a nightmare.

And second, it used to be that you could start a DRIP and literally almost forget about it for decades.  Not anymore.  Like every other investment, stay on top of it and have an exit strategy.

Dec 22, 2013 7:01AM
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Always read the fine-print. The prospectus might sound alluring, but what about fees? For example, will the transaction fees offset any gains? Will you, or the gift-recipient, be taxed on re-invested dividends?
Seriously, do your homework on these...

Dec 22, 2013 8:07PM
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There are no new fangled investing strategies for making money in todays market.... The old way is still the best way. 
Dec 17, 2013 11:04AM
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I think a Rollover IRA or IRA will function the same way Brutus....

Only have to do tax calculations on withdrawls, which could be years down the road...

Dec 22, 2013 4:06PM
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All my stocks in my IRA and Roth IRA are setup in DRIP through TDAmeritrade.  I'd love to buy my 1 and 3 year old nephews a few DRIP shares, but I'm not sure about the tax implication and how this might impact their ability for college financial aid.  


Dec 22, 2013 10:56AM
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MSN always has advice for people and their money.  But, they are a big mess up, in my opinion.  They should be telling CONgress how to handle money.  They need instruction more than anyone I know.  And they don't tell you the drug dealer mentioned drug in 55 BILLION dollars in 2009.  I wonder how many people they killed to drag in that amount.  How many are in cemeteries today and how many are walking zombies because they took the junk put out by the drug dealer?  Once you get pills from them, they call relentlessly with "dis isa curtsey call.  Yo piills is redy!"Dont tell them to stop calling.  They won't.  Tell your doctor you aren't getting anymore pills from them
Dec 22, 2013 8:08PM
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I'll keep my money in the credit union, thanks.
Dec 22, 2013 5:54PM
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I see an article that says something about a Billionaire dying.  Is he any more important now than your neighbor or the elderly lady slowly crossing the street? I get so tired of the hoopla in this country about someone who is rich while the poor people who pay the most taxes are ignored.  I'm sorry for the family of the guy who died.  But, he is over and out.  I wonder where he is now.  His money may have gotten him a lot of recognition in life and it may have gotten him preferences.  But, now he is equal.  His money is worthless! In a little while, he too will not be mentioned.  Money is not everything.  If you are POOR, I love you.  If you are rich, you are the same as anyone else to me.  If two people have a flat, one poor, one rich.  I'll pick the poor person up first if I know them.
Dec 22, 2013 2:13PM
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Do the legal drug dealers have people posted on here to thumbs down any sort of opinion that sheds truth about them?  I feel very sure this sorry ashed government does, but do the legal drug lords have people working overtime to discredit anyone telling the truth about them or about the "ask your doctor" ads?  Seems a post non-supporting of  "ask your doctor" or medicare supplement ads get thumbed down quickly.  I just laugh and wonder if our country  is that addicted.   I think it must be.  China, come on over, baby!! It'll be an easy take over when we are all zombies!  You can thank the government and the legal drug lords for your new possession and maybe you can make it productive again.
Dec 22, 2013 11:00AM
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Yup.  Put 765 dollars in this and it will likely change your life.  Your money will be gone, your taxes will increase because of any returns you get.  In the end, you'll get it up your end.  Your life will be changed forever. Anything that is recommended, you might best avoid.    Don't take the wide path of the masses.  That usually leads to destruction.  Take the narrow path traveled less frequently.  It leads to peace and quiet.
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