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posted September 05, 2004 08:47 AM            

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...what do you think about putting money into a DRP in stocks, I just looked into it and I thought that it might sound interesting.

I know that right now your probably "under the weather", but when you have a chance, I would like to know what you might think about it.

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posted September 05, 2004 12:19 PM              

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har har har "under the weather"

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posted September 05, 2004 12:40 PM            

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Ahhh! I thought that somebody might like that!

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posted September 08, 2004 07:40 AM            

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I need to know from your knowledge JW about that DRP that I've found, I'm in kinda in a situation that I'm trying get out of and I have been looking frantically into changing my position in life. I found the DRP thing and I just wanted to know if that is just all a mere farce or is their really something to this?!

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From: Brisbane, Australia
Registered: May 2009

posted September 08, 2004 03:05 PM            

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Ok, this is probably stirring $hit, but, how is it that you disparage Jwhop in general whenever you two get into it, then you turn around and ask for help/advice? I mean, you've said some pretty nasty things about him, but then apparently he's good enough to give you capitalistic advice?

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“The good things which belong to prosperity are to be wished, but the good things that belong to adversity are to be admired.” Seneca

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posted September 08, 2004 03:37 PM            

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Yes this is stirring $hit Isis, but even though I might not agree with him on politics, that has nothing to do of what I'm asking him.

..and yes, he did ruffled my feathers quite a few times, just like your trying to do now.

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From: Brisbane, Australia
Registered: May 2009

posted September 08, 2004 03:41 PM            

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I'm not trying to "ruffle your feathers", I'm trying to understand. I will tell you this, if he helps you, he's a bigger person than I, that's for sure. Sometimes people have to stir a little $hit to understand, ask the questions people don't want to answer, bring up the subjects people don't want to talk about, etc.

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posted September 08, 2004 04:03 PM            

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Well, maybe we can talk about things on this Forum without getting at eachother's throughts, people complain when there is fighting and then people complain when there's not enough of fighting, I can't win.

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From: Brisbane, Australia
Registered: May 2009

posted September 08, 2004 06:28 PM            

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Who complains that there isn't enough fighting? Sheesh, all this bickering just gets freaking tiring. It gets to the point where who cares, screw it, it's not worth it...

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Posts: 2787
From: Madeira Beach, FL USA
Registered: Apr 2009

posted September 08, 2004 07:24 PM            

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Hey Ozone, DRP's are known as DRIPs on the street. Dividend Re-Investment Plans.

I think they're OK because you are usually buying stock directly from the company out of their own shares and there isn't any brokerage fee.....generally.

They usually want you to commit to a plan to put money into your account on a monthly basis.....as low as $10 per month with some companies and then they use the money to sell you their stock...one share or more at a time depending on how much you allocate to your plan each month, and sometimes at a discount of up to 10% below the exchange price of the stock. Obviously you must buy stock in a company that pays dividends or there will be no "income" from the account to "Re-Invest". Dividends are almost always approved by the board of directors because it tends to show the company is profitable...even if they lost money in the quarter or even for the year.

For a small investor, it's almost like a forced savings plan but when you own the stock....and you do with a DRIP, the value will still go up and down with the market. There are some rules the different companies set up so you will have to correspond with the "investor relations dept." of the company to find out what their procedures are.

Obviously, you're looking for a DRIP with a high yield, which is a function of the dividend divided by the price of the stock. Example: Dividend is $5.60, stock price is $37.75. Yield equals $5.60 divided by $37.75 = 14.83%, which would be a pretty good return on invested money. Obviously, the lower the stock price in relation to the dividend the company pays, the higher the yield will be and since it's a Re-Investment Plan, it's the dividends AND your monthly investment into your account that gets invested and Re-Invested in additional shares of stock.

Make sure you only invest in good solid companies that will be around for a while

You might also want to check out DPPs or Direct Purchase Plans. You can check both at this site and get more information, including companies who offer DRIPs and DPPs.
http://www.investorguide.com/dripslist.html

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posted September 08, 2004 07:50 PM            

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I know this sounds a little stupid for me to ask JW, but with those dividends, will they always be re-invested into new and/or "other stocks" and can I take out a little for myself as well? And if that's the case, where exactly can I transfer them in order to recieve them?

Like can I get them transfered into my checking account?

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From: Madeira Beach, FL USA
Registered: Apr 2009

posted September 08, 2004 08:14 PM            

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Generally, the company holds the shares of stock in your name. Same way a stock broker holds shares of stock for their clients who have purchased shares. Brokerages will send your shares to you but that would mean you couldn't sell quickly because no broker would sell your shares of stock unless they had the shares onhand.

I do not believe a company would send the shares you own to you. I used to be a stock broker and my recollection is that they hold them in your name and you get a statement from the company as to the balance and activity in your account. I also don't believe you can withdraw shares or money from the account. The whole idea is to use the money in the account to purchase additional shares of stock in that company when there is enough money in the account from your monthly deposits and dividend income.

The idea that a DRIP account with say General Motors would be used to purchase shares in a different company's stock, say Ford Motor Company would send GM investor relations into hysterics.

I think if you withdraw money or sell the shares and have the money deposited into your checking account or anywhere else, you would be closing the DRIP account. You will have to do as I suggested and contact the investor relations department of the company or companies you are interested in and the site I gave you has the contact email address for those companies which have DRIP and DPPs.

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posted September 08, 2004 08:21 PM            

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Well thanks JW, that's a big help, I'll look into it and see what I can do and I can find from what you have given me!

*shake*

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posted September 08, 2004 08:26 PM            

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Oh yeah, I forgot. How do I go about the buying and selling of my stocks, (I mean in general), do I get on the "horn" and tell him to "buy, buy, buy" or "sell, sell, sell", or does he/she do that automatically for me without me telling him or her?

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Posts: 2787
From: Madeira Beach, FL USA
Registered: Apr 2009

posted September 08, 2004 10:11 PM            

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I think any selling activity would close the DRIP account but that would be one of the questions you would want to ask the administrator of the program. I doubt they will wish to sell you any of their stock and perhaps at a discount only to have you sell the share(s) on the open market at full exchange value.

As to the buying, I would think that at any time when the funds in the account were sufficient to purchase another share of the company stock, the administrator would make the transfer of stock to you and reduce the amount of money in the account accordingly. Another question you will want to ask the administrator of the DRIP program.

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posted September 09, 2004 02:51 AM            

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What does a DPP do?

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From: Madeira Beach, FL USA
Registered: Apr 2009

posted September 09, 2004 09:53 AM            

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Direct Purchase Program

A SEC-regulated program which enables a company to sell shares of stock directly to investors, rather than through a broker, enabling the investors to avoid paying a commission. Direct purchase programs are a good way to invest small amounts since you don't even have to be a current shareholder in order to purchase the shares. The company will not charge you a commission, but they may charge you a small fee in order to set up a stock purchase account. also called Direct Stock Purchase Plan (DSP).

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posted September 09, 2004 11:08 AM            

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With all this charging on the invester, does the invester really make money out of this? And if so, how?

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From: Madeira Beach, FL USA
Registered: Apr 2009

posted September 09, 2004 11:19 AM            

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Ozone, have you read a single word from the investor link I furnished?

Is this a replay of the real estate information I gave you that you never investigated?

When it seems I'm more involved in someone's alleged area of interest than they are, I opt out.

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posted September 09, 2004 12:14 PM            

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Well actually JW, I've been a little kinda busy lately and all I've been doing is jumping on and off the PC at random(it's a long story)and I needed to ask you what was your take on the matter, that's all.

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posted September 09, 2004 03:12 PM            

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I talked to a representative at Ameritrade a little bit about it and I kinda liked what he was saying to me about the DRIPS, but I would like to know from you, what do you think about Ameritrade, do you think that they are reliable?

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From: Madeira Beach, FL USA
Registered: Apr 2009

posted September 09, 2004 03:26 PM            

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Ozone, Ameritrade is a stock brokerage firm. The entire attractiveness of DRIPs and DPPs is that you purchase shares directly from the company and avoid stock brokers and their commissions altogether.

Why would you be talking to a stockbroker instead of one of the companies listed on the investor site I gave you?

I'm going to refer you to the investor site once again Ozone. Or pick another site of your choice.

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posted September 09, 2004 04:04 PM            

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Well to be modest about it, I don't really know what I'm doing, that's why I'm asking you, nobody in my life has ever given me information about this before. All the people that I've talked to(besides you)has told me that it's either a gamble, a waste of time and money, that I'll lose everything,etc, but lately, I've been looking into what you have told me(more then a year ago, before we started our little 'Tour de France' about politics) and I thought to myself that maybe there's a breech within our conserversation that is worth while holding onto instead, something that might just have deeper meaning! I'm not waiving around some "Big stick", I'm holding out an Olive Branch!

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posted September 09, 2004 04:14 PM            

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I did call a couple of those companies too, but I don't know what to say to them and I don't know how to go about buying the stocks or even looking into what I might just get out of it as in what kind of dividends do I receive or am I just doing this to buy a whole bunch of stock and I don't even know what to do with it, like how can get at lease something back or to build into it and get myself into a better position, like buying that home and be able to pay that morgage. I'm just tired of apartments, landloads and dirtbag neighbor tenants that I got to deal with daily!

I rather deal with bankers and professionals onto some higher standards, then what I got now.

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From: Brisbane, Australia
Registered: May 2009

posted September 09, 2004 04:43 PM            

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You call a company, ask to speak with Investor Relations (even if that is not what their version of the dept. is called, they'll know what you're talking about).

Ask how you go about buying their stocks directly. You will of course I'm assuming need cash on hand to make the purchase.

Any investment is a risk. Yes you could lose your ass, you could get rich, or more likely, you end up somewhere in between.

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