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Author: MuadDib Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27818  
Subject: Re: DRIP selection Date: 8/9/1997 1:08 PM
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First, Shell does have a DRIP--I don't know about the particulars. Royal Dutch has a Direct Investment Plan for its ADR. If you like oil, check out British Petroleum--it has a direct investment plan for its ADR, as well (phone number is 1-800-749-1687).

I should have been more clear in my post. Let us assume that all companies under consideration have strong balance sheets, good/great prospects going forward 20 years, and favorable DRIP (i.e. fees are not an issue).

Now, what role does the type of stock play in making a DRIP port?
I do believe that current dividends play a role in selecting a stock--if two have the similar prospects and one has a higher dividend yield (now and historically), wouldn't be a better choice to choose the one with the higher dividend yield (more bang for the buck)?

The purpose of a DRIP port (at least for me) is to allow me to build a portfolio over time through the reinvestment of dividends and optional cash purchases. With growth companies like Intel, one must make more optional purchases over time to have growth in the number of shares and effectively dollar cost average. With mature companies with high dividend yields, one does not have to make such large OCP's because of the dividends.
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