I've been in PGs DRIP for two years and am very
happy with the results. Automatic purchases
every two weeks, with no cost. Will be a nice
bundle of $$$ in 10-15 yrs.
PG's products will be bought worldwide for my lifetime.
Not really cheez....if he got in 2 yrs ago, then he was picking up shares in the 50's and has received 8q div payments. My DRIP account (while not massive) is doing very well and I intend to keep purchasing every 2 weeks til I'm dead...and every once in a while a nice fat onetime buy...I'm in the green and collecting a nice safe div...this isn't a retail traders stock, it's an investors stock. If you want big moves, play the Chinese companies.
I don't understand. The dividend reinvestment program can only add to your account at each of the quarterly company dividends. What is this every two weeks automatic purchase? Commissions are so low now there is very little advantage it seems to me and the record keeping necessary to keep your basis straight makes DRIP a pain in the xxx. If I wanted to add to my position, I would do it at times when the stock is selling a bit lower as it does from time to time. I'd bet that most people using DRIP don't keep good records and will have problems in later years with the IRS when they want to sell. WW
All DRIP stockholders have the choice to buy stock once or twice every month. You can also buy once per month or on a one ONLY payment. As of the first of January 2012, all drip accounts must have at least 10% going into (bsck into) your Drip account.
"I'd bet that most people using DRIP don't keep good records and will have problems in later years with the IRS when they want to sell. WW "
P&G shareholder services calculates cost basis for stockholders.
P&G keeps track of the drip for you. They keep the purchase date along with the amount of shares and price paid. How much simpler can it get. You also get a Dividend sheet so you can pay your dividend taxes unless you have it all in a self directed IRA of some sort. It can be done and also be so simple, been doing it for years and it passes the smell test very well.
Most DRIP plans allow additional "contributions" (buys) up to X dollars per period commission free.
Yes, I'd imagine the record keeping would be challenging, unless one keeps a spreadsheet (that's what I do with the issues I reinvest divs).
Due to record keeping, I didn't reinvest some of my divs until brokerage firms offered this service.