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Subject:  Re: How Do You Know When to Stop?? Date:  9/5/2001  4:51 PM
Author:  OperaBob Number:  20467 of 27910


For the record, OB, I'm 46, so I have slightly less than 20 years till retirement.

I'm 50 so your 20 years to go looks good to me! ;-)

An example of "lump summing" it and just letting the dividends reinvest I've used before:

1982 my parents purchased 500 shares of BCTel at $6 per = $3000 total investment.

Over the next 16 years they just let dividends reinvest and made no further OCPs.

In 1998 they had 850 shares @ $55 per = $46,750
This equals a 19% annual rate of return.

At the same time the 850 shares were paying approx. $1200 /yr. dividend.
This is a 40% return yearly on their original $3000 investment.

This is all without making a single OCP.

That's in 16 years (which is under your 20 yr. time horizon).

But as I said you have to stay on top of things. As you know the telecoms have been having a rough go. BCTel merged with Alberta's Telus to form TELUS and TELUS has been active in reinventing itself as Canada's second national carrier. As there is a lot of uncertainty the shares have fallen to about $25. But the dividend is purchasing 48 more shares per year at the moment. As I don't see TELUS going under I'm quite happy at the moment picking up the extra shares in my own account.

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