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?
Great post in 2009 - as of 1/17/2012 stock is trading at 28.39 and dividends continue to be increased. Those in for the long haul and not forced to use funds when the economy craps out, will/have benefited from the growth. I bought in 2003 at 18.00 - there have been two splits and numerous increases in dividents. I can't be happerier with this stock and the dividends paid. Won't use them for a few more years, but will be happy to have the grown.
I wrote here about my experience with various DRIPs, and what I've learned from long conversations with brokers and account reps. That opened my eyes, and we exited almost all DRIPs that we had (more than 20 at one time).
Most of you probably receive some promotional email "teasers" about FREE shares you are entitled to. Yes, they talk about DRIPs. The author of the original post is right - the fees are killing these types of investments. I described my experience selling a fractional share of Intel long time ago - it was a real shoker. Fees on fees, charges on charges, commissions on commissions....
It may be not so huge if you pay 15 cents/share of $100/sh stock but with current price of WTR in the $15th - it is a robbery.
I have held WTR 1 more year then your DRIP plan. 8/03. My return without re-investing dividends was 16.52% in that 6 year period. Just sold in beginning of Oct. I got tired of seeing it go down, and moved the money to LLY. Something is not right w/WTR.
Some are ok, I had the Duke Energy drip and it worked well. I do not remember a single fee. It is run through the company itself and not by one of these ripoff sites. I was in the WTR drip 1k a month for a year or two and maybe made 500 dollars. But the sale was 200 dollars or more in fees.
I pulled up a chart,
Nov 2003 pps was 16.24
Nov 2004 pps was 17.79
Nov 2005 pps was 16.23
Dec 2005 split 4/3
Todays close pps 16.24
If you bought around five years ago,you rode it all the way up,and right back down.At some point you had a very healthy return, Been there, done that,shoulda,coulda,didn't .
Hey,your right,that nov,05 was a typo error,but nothing else changed in that post.
You did buy at the top,rode it up and back down again.
What would have happened had you bought a house in 05,instead of saving for one with that money you invested in wtr.You would also have bought at the top,bet you would have rode that down too,right into foreclosure.
Your not a moron,your a whiner,Do you really think you are the only drip holder thats down from the top.When it hit 30,I had a ten bagger plus, without adding in the splits and divys.
So why are you holding on?
It's refreshing to read an honest post on this board. Most of the posts are from mindless pumpers who tout WTR stock as if it is one of the best stocks of all time. WTR has had its day in the sun but it is a company in serious decline.EPS just don't keep pace with revenues. I got out early in 09 at almost 20.75 per share. If you tell it like it is on this board there will be a lot of name calling but the stack performance speaks for itself. GLTU.
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.
I have been in the Drip for 10 years. Look at the charts. I am pleased with the results. Not a big mover but a steady stock. Great for the IRA. How did you lose money if you reinvested. I really don't get your comments on WTR.
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 . . . .
The problem here is you bought right before the market crash. I have the same problem with Middlesex Water Company stock. I paid approximately 22.00 per share on average over the past 10 years. I'm looking to sell and will get hammered at today's prices. Middlesex is floundering at around 18 and has been since Dennis Doll took over. Tell me why a stock with guaranteed earnings is in the toilet all the time. I'm out of the market completely after I sell.