Dividend Reinvestment Plans

361 views

Published on

http://www.profitableinvestingtips.com/profitable-investing-tips/dividend-reinvestment-plans

Dividend Reinvestment Plans

Published in: News & Politics
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
361
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Dividend Reinvestment Plans

  1. 1. Dividend Reinvestment Plans By www.ProfitableInvestingTips.com
  2. 2. If you want to see your investment gains accumulate and exponentially grow over the years, consider dividend reinvestment plans. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  3. 3. We recently talked about dividend stocks like utilities when we wrote about stock picks for 2014. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  4. 4. Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com
  5. 5. Utilities commonly pay handsome dividends and commonly offer dividend reinvestment plans. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  6. 6. The advantage of dividend reinvestment plans, also referred to as DRiPs, is that your dividends are automatically reinvested and you receive decimal fractions of stock so that every cent of dividends in reinvested. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  7. 7. You do not receive a dividend check but rather a statement that your dividends were reinvested. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  8. 8. At the end of the year dividend reinvestment plans send you the appropriate information for your tax returns as well. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  9. 9. There is no temptation to spend the dividend check and you will see steady and exponential growth of your investment even if you do not purchase new stock. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  10. 10. And with DRiPs there are commonly no fees such as you would pay if you used your dividend checks to purchase more stock. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  11. 11. The utilities we mentioned in our 2014 stock picks article were: http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  12. 12. Southern Company SO Duke Energy Corp DUK Dominion Resource D American Electric AEP Cleco Corporation CNL Entergy Corporation ETR NextEra Energy, Inc. NEE NRG Energy Inc NRG SCANA Corporation SCG TECO Energy, Inc. TE Xcel Energy Inc XEL http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  13. 13. There are lots of dividend stocks and lots of dividend reinvestment plans. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  14. 14. As part of your stock portfolio consider holding conservative stocks that will continue to pay dividends in good and bad economies. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  15. 15. Consider dividend reinvestment plans in order to profit from exponential growth of your investments. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  16. 16. Screening for Dividend Stocks http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  17. 17. A quick and handy tool for stock screen is the Yahoo Finance Stock Screener. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  18. 18. You can use this tool to screen stocks by sector, price, dividends and more. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  19. 19. As a conservative example we choose stocks with a market cap of $10 Billion or more and a dividend yield of 3% or higher. We found Duke Energy Corp, which is in our list of utilities. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  20. 20. The company has a market cap of $50.44 Billion and pays a 4.4% dividend. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  21. 21. We googled Duke Energy Dividend Reinvestment Plan and found out that for their DRiP you do not pay purchase fees or reinvestment fees and that purchases are made every month. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  22. 22. The stock screen in which we found Duke Energy contains http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  23. 23. ConocoPhillips (80.28B, 4.2%) Cisco Systems (119.43B, 3.4%) Dow Chemical Company (55.59B, 3.2%) Chevron Corporation (218.24B, 3.5%) Dominion Resources (41.34B, 3.4%) http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  24. 24. Note that Dominion is in our list of utilities. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  25. 25. High Dividends Versus Staying Power http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  26. 26. The companies listed in the screening section are been around for years and are not going away. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  27. 27. This is the point of buying dividend stocks and using dividend reinvestment plans. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  28. 28. There are higher paying dividend stocks but sometimes the company is paying out huge dividends to disguise an intrinsic weakness in their company. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  29. 29. If we apply the same requirement of a $10 Billion market cap but look for a dividend yield of over ten percent the screen gives us two stocks, Annaly Capital Management and Seadrill Limited. Annaly used to sell for $19 a share through most of the last decade and fell by half this last year. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  30. 30. Think of it as a 5% dividend stock whose price fell by half and whose dividend may well be reduced as well. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans
  31. 31. When we screen for Seadrill we see an investment article that notes that Seadrill will only be able to sustain its dividend if the current weakness in the oil drilling market improves. http://www.profitableinvestingtips.com/profita ble-investing-tips/dividend-reinvestment-plans

×