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ConocoPhillips Message Board

  • patient_lt_investor patient_lt_investor Nov 2, 2013 11:33 AM Flag

    Dividend Reinvestment Programs

    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 faster than most investors imagine.

    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 COP, 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.

    Good luck to all COP shareholders and to all dividend/DRIP investors.

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    • Agree, this is a Janet Ellen's stock. Also, the yield is very attractive, I switched from XOM to COP. Not sure for PSX, but I am sure ABT and ABBV will do good too. Never miss a dividend and always dividend increase.

    • basically what you say is true but with extremely low commissions of $3 per trade it is hard for me not to want my dividend to invest into stocks at prices I want rather than the inflated prices that often occur with drips but over the long term it doesn't matter much as appreciation will over come that cost but then that is true with commissions also. With computers and trading platforms and low commissions of $3 per trade I don't know how people continue to use high price brokerage.

      • 2 Replies to rlbeard6734
      • Since I am retired the dividends I get from non-IRA accounts are used to live on: however, over the years I have accumulated stocks in both traditional IRA's, as well as, drips. I receive enough dividends in these accounts that i let them build each quarter and then invest in companies that I already own that look the most attractive.

        I also have 8 grandchildren and originally started DRIPs for the older ones, but since have set up a minor gift account for each. I then buy a block of stock and have my broker (USAA) via a letter of instruction distribute shares to each account. The dividends are automatically reinvested by USAA. You can by the stocks on line but USAA does not allow you to do the transfers yourself. So far my grandchildren own COP, PSX, SE & CL. I believe that we are on the verge of a secular bull market that could last for a decade or more do to the lowering of commodity prices. Energy stocks will do very well.

      • The ideal place to use a DRIP is inside a 401K . Most people either do not know they can keep their 401K when leaving a company, or fall for advertisers exhorting them to be "smart" and roll a 401K into THEIR funds. I kept my PPCo 401K when I changed companies and simply let the divi's reinvest for the next 20 years at a minimal cost. My number of shares more than DOUBLED as did the number of comma's in the value. At the same time I was investing in my new companies 401k. When I retired a few years ago I also kept that companies 401K but moved the funds out of stock and put it in the safe "stable value" fund which are basically unavailable at the large fund companies.

    • Agree, this is a Janet Ellen's stock. Also, the yield is very attractive, I switched from XOM to COP. Not sure for PSX, but I am sure ABT and ABBV will do good too. Never miss a dividend and always dividend increase.

    • 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. And 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............ and didn't diversify.

      Diversify, diversify, DIVERSIFY!

    • So many people, regardless of income, fail to think about or to invest in some of the important things in life. And there will come a time when it's too late to start.

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