really simple investing drips

13
www.reallysimpleinvesting.com Really simple investing Dividend Reinvestment Plans (DRiPs)

Upload: floyd-saunders

Post on 20-Jan-2017

58 views

Category:

Presentations & Public Speaking


0 download

TRANSCRIPT

Page 1: Really simple investing DRiPs

www.reallysimpleinvesting.com

Really simple investingDividend Reinvestment Plans (DRiPs)

Page 2: Really simple investing DRiPs

www.reallysimpleinvesting.com

Learn More at: http://www.reallysimpleinvesting.com

Follow us on Facebook:https://www.facebook.com/1ReallySimpleInvesting/

Page 3: Really simple investing DRiPs

www.reallysimpleinvesting.com

DRips

What is a 'Dividend Reinvestment Plan - DRIP'

A dividend reinvestment plan (DRIP) is offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. A DRIP is an excellent way to increase the value of an investment. Most DRIPs allow investors to buy shares commission-free and at a significant discount to the current share price, and do not allow reinvestments much lower than $10.

FromInvestopedia http://www.investopedia.com/terms/d/dividendreinvestmentplan.asp#ixzz4FtbbLzt6

Page 4: Really simple investing DRiPs

www.reallysimpleinvesting.com

“So, I can’t really afford to buy a bunch of stocks, you need to be rich to do that.

What do I do to get started?”

Page 5: Really simple investing DRiPs

www.reallysimpleinvesting.com

Good News, You can buy stock directly from the leading companies and even

buy fractional shares, with limited monthly contributions.

It’s called a Dividend Reinvestment Plan or Drip

Page 6: Really simple investing DRiPs

www.reallysimpleinvesting.com

How to Start with Dividend Reinvestment Plan

Page 7: Really simple investing DRiPs

www.reallysimpleinvesting.com

DRIP Advantages & Disadvantages

Advantages Can invest small or large amount

Compounding dividend increases

Stock price appreciation

Dollar Cost Averaging (OCP)

Basically Fee Free (50% of US co)

Stable Shareholder Base

Inexpensive Source of Equity $$$

DisadvantagesCan be Cancelled by Company

Inability to Time Market

Minimum OCP Amounts

Fees are Increasing (US)

Dividends are Taxable

Tracking Adjusted Cost Base

Odd Lots from mergers

7

Page 8: Really simple investing DRiPs

www.reallysimpleinvesting.com

High Quality Stocks w/DRiPs

Page 9: Really simple investing DRiPs

www.reallysimpleinvesting.com

Ok, those ideas are great, but I don’t want to take

the time to get all of those Dividend Reinvestment Plans set up, is there an

easier way?

Page 10: Really simple investing DRiPs

www.reallysimpleinvesting.com

More good news, There are a number of

leading mutual funds that do all the work for you . . .

Examples include . . . .

Page 11: Really simple investing DRiPs

www.reallysimpleinvesting.com

Dividend Mutual Funds/ETFs

Three of the best mutual funds for high dividend yields:

Page 12: Really simple investing DRiPs

www.reallysimpleinvesting.com

Floyd Saunders Author: Really Simple Investing, Family Financial Freedom, College Without Ramen Noodles, Figuring Out Wall Street and other books

At Really Simple Investing we provide educational resources and offers unbiased product free seminars on financial planning, money management and investing.

Since 1996 we have providing clients with personal money management and investing training tailored to individual circumstances and objectives rather than advisor incentives or commissions.

Our workshops are product free – We only provide education.

Contact us at: [email protected]