Basic Investing For Beginner

Drip stocks are stocks that allow you to buy more shares with divedend from that stock. You can buy as little as one share and then buy more shares of the stock directly from the company or broker who handles the drip program.

Drip stocks main advantage is low fees and lower cost. You can set up some drip stocks for as little as $250 to start. Then you can ad from $50 a month or as much as you want.

Drip stocks are a great basic investing program. You can even set up drip retirement accounts. The money you invest buys stocks in one company and that company pays divedends. Drip investments reinvest the dividend automaticaly so you get more shares in that company.

They are easy to set up and very liitle work on your part once they are set up. You can have mutiple drip stocks so you do not invest in just one company. I like the drip stocks for retirement accounts. You set them up and send money in when you want to invest more money. A broker or the company handles all the rest. Very simple invesment idea. You invest the money and add more when you can. The company buys more stocks for you with every dividend they pay. It really can add up to alot of money.

You can find drip stocks on the internet. Alot of companys offer them. Most want you to own atleast one share before you can set up drip account. This means you need a broker to buy one share for you. Some drip stocks let you buy right from the company no broker needed.

The only disadvantage to drip stocks is you own one company unless you buy drip stocks from mutiple companies. You can do this but it might make doing your taxes harder unless you use a tax software or company to do your taxes.

Would i invest in drip stocks yes. I own drip stocks myself and have made good moeny for the last 15 years. Just make sure to look at the drip stock you want to invest in. Look at the stocks earnings for last 5 10 or 15 years. The longer the better. This will show you what average rate of return they pay. The higher they paid for the longer amount of time the better the drip stock is.