If you are young and saving for retirement, children's education, a house, or anything else, then consider good dividend paying stocks and their DRIP's.
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up fast.
So many people, regardless of income status, fail to save up for the important things in life. At one state of our lives we'll end up old and unable to work. The question is, will we have enough income to provide for ourselves, or not. Dividend stocks and DRIP's, now, are an excellent way to preclude poverty from occurring in our old age.
Dividend stocks and DRIP's for children's educational accounts are an excellent way to assure our children's educational opportunities and to preclude them from being saddled with a stifling college loan debt.
Think about stocks like CSX, and so many other solid companies, that offer good dividends and DRIP's. There's always good excuses not to save, but the fact is that now is the time to save. If you are young and begin saving now, for the important needs of your future, it will be easy. If you wait until you are in your forties or fifties then it's way too late. Wait until your sixties, then you'll be poor and eating Alpo. Just a word to the wise.
One important rule, be sure and diversify your dividend paying drip programs. There are many stocks out there that pay great dividends. Diversify, diversify, and diversify so that if something bad happens it won't affect your investments, as a whole. Only invest in good companies with growth/history/dividends.
If you don't think that you need to diversify, then think about the shareholders who were confidently invested in Enron, WorldCom, Washington Mutual, Citigroup, Lehman Bros, Lucent, Citigroup......