Another recent thread on this board touts a DRIP as a failsafe way of profitably investing in Aqua America. Given the Pollyanna nature of that thread, I wonder if a company employee wasn't responsible for posting it in an effort to sucker more people into buying. But I digress...
Nearly 5 years ago I started a DRIP with Aqua America. It was through Equiserve, which later became Computershare. The DRIP's purpose was to provide my son with additional funds for a down payment when he bought his first house. He's now doing that, so let's do a reality check on whether I did him any favors.
With Aqua America's further drop today, the DRIP investment has lost 29% of its value. This is even in spite of the increased share purchases made possible as the pps has dropped and the dividend has risen. Sobering, but that's not all.
The actual loss on this investment if liquidated today is actually over 30%. This is due to back-end fees of a flat $15 to liquidate, plus the .15 charge per share at sale time. That's a hefty back-end load!
Please, please, if you are considering a DRIP with Aqua America, run, don't walk, in the other direction. You'll do much better by simply putting your face amount into a CD, even with rates as low as they are now.
Now, some silly person may respond to this post by lamenting my lack of timing. So just in case, I'll respond right here: You don't think that in nearly 5 years the "timing" issue would have become moot? Just how many decades would I have had to hold this investment to get back to breakeven?
I've been investing for 52 years and my goal is to make money. What other reason would there be? My wife knew someone on the WTR board and from discussions with him she tried to convince me to buy WTR shares. I had hundred of other options and never did buy any. Instead I had "inside information" on AAPL from our son who is technically astute. This was legal "inside information", unlike the kind of inside informaition Nancy Pelosi and her husband used to further enrich themselves. Of course she denied any impropriety but its the kind of deal only the royalty can get away with. Martha Stewart was not royalty so she had to do time in the slammer. Based on our son's belief in Apple, I bought over 200 shares of APPL instead and cleared $50K before selling out, a much better return than possible with most other stocks. Now that my age is approaching 90, I'm afraid I will have to become more conservative. That will be hard to do. By the way, the government is badly broke and it won't make any difference who is elected in November so there is no need to argue over it. We all better figure out how to survive the coming problems. I was born during the Great Depression and I can see ending it in the next really big one.
Really .15 per share cost to sell why I have a drip account for div. stocks never sold any for 5 yrs.
Is this WTR Issue or did I f up
Thoughts and does it include tax deferred companies such as riets and mlp’s
Anyone know no #$%$ please as I avg. 10% but 15 cents is huge on per share basis
thank you in advance
Having studied a 5 year chart of WTR I don't see how you could possibly be telling the truth unless you put most of the money in at the start. There have only been a few brief periods during which the stock has traded higher than where it is currently and for most of that 5 year period it has traded considerably lower. If you had honestly stayed the course and continued to invest consistently while reinvesting the dividends which is what DRIP investing is all about I don't see how you could possibly have lost money. Having said that obviously if you are not a fan of a stock you are better off moving on. I've been dripping with WTR for longer than 5 years and while it has'nt been my best performing stock I have done very well with it.
I bought over 250 shares in 2003 and have reinvested dividends each quarter. In only 10 of those quarters are the "drip shares" valued lower than today's price. Overall this stock is worth significantly more than I paid originally and thru the drip program. I don't intend to leave this stock unless something comes up where I need cash or this stock looks to drop below 18.00 and stay there. Though that could happen if the current economic climate in the US and the world doesn't change soon.
note: the stock market peaked in like 2006 and has been sliding ever since, it only recently has been coming back
me i am in the drip and its done ok by me. I plan on retiring and using using the dividends as part of my retirement.
remember diversify your holdings . . . .
GE five year record is even worse. kids college fund has negative growth over that period, and we can't even fire ceo obama politico because funds think he is great.
his record is plunging too far into high profit areas but then unable to see they are soon heading over the cliff.
he tried to also sell their light bulb division and appliances which made them GE but nobody by that time wanted them. that is his track record over an over again.
if he ever gets the boot, I might buy back in the ge behemath.