“Drip” is the acronym for dividend reinvestment plan. A dividend reinvestment plan is offered by a corporation, and it allows equity investors to take monthly, quarterly, or annual dividend income to reinvest those cash dividends into new shares of the company. In doing so, this creates a compounding effect, as a greater number of shares owned results in a greater amount of dividends paid.
Long-term investing and growing a portfolio over time isn’t an easy task. It requires a lot of planning and a significant amount of research. While doing this, many investors tend to forget one very important aspect: the costs associated with investing in their portfolio—the commissions and fees. If investors control the commissions and fees paid to their brokers and elsewhere, they can save a significant amount of money and have a bigger portfolio in the end. For those investors who have resolved to invest money in their portfolio in 2014, the following are three ways to add more wealth to your portfolio ove ... Read More
Good investing doesn’t have to be complicated. If you want to save for retirement using the stock market, most individual investors would likely choose a selection of mutual funds or exchange-traded funds (ETFs). Going forward, a lot of people are viewing the stock market as very vulnerable; unless there is another war or the euro currency really does come apart, the next big pullback is likely to be an attractive buying opportunity for those able to put away some savings for retirement. A portfolio investment strategy is always crucial, and over the years, I’ve learned to be very conservative with equities. There’s always room for a few highfliers, but I don’t bet the farm on anything. Putting to ... Read More
In the stock market, you can do well as a conservative, blue chip investor. You don’t need to speculate in gold, oil, or technology to generate good rates of return. As always, the keys to successful stock market investments are good timing and owning a business that’s growing its earnings.A lot of conservative investors who are saving or are already in retirement buy utility stocks because of the consistency of their earnings growth and their typically higher dividends. Especially for those investors looking for income, the higher dividends associated with utility stocks are attractive. One utility with a great long-term track record on the stock market is The Southern Com ... Read More