Investing via DRiPs (Direct ReInvestment Programs

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4 years ago

So what do you do to protect some of the profits you have obtained in crypto-currency?


Consider investing in stocks, which pay dividends.


Direct Reinvestment Programs (DRiPs) are offered by many dividend paying companies. Each quarter the company pays its stock holders a percentage of the stock price as a dividend. Some companies offer investors a method to invest without a stock broker through DRiP programs.

I use Shareowneronline.com to invest in companies such as Exelon, General Mills, Kraft-Heinz and many more at little or no costs. This is not a day trading method by any means. I consider this a set and forget method of investing.


Most programs will allow for small monthly investments to be made each month. From as little as $50-$100 you can invest each month in the company. You can setup automatic withdrawal from your bank account and each month they will take out the amount you want. As the stock market goes up and down you get what is called “dollar cost averaging”. This means you will buy sometimes at a high and sometimes at a low and the cost will average out over the month.


The advantage is that you are not trying to time the market, not watching every day to see when to buy or sell. This is a long term play. Each quarter you collect the dividend, reinvest it back into the stock and now will collect more dividend next quarter. You gain form the stock price increase and from the dividend. It’s a great method to invest for your future if you do not like following stocks and charts.


Look for companies you use their products and like. This way you will know if they are doing a good job and should keep investing. My plan is to build up enough stock form 5 companies to get $1000 a year from each to use in retirement to enjoy life.

 

My investments are Wells fargo, General Mills, Mereck, Kraft Heinz, and Exelon 

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