Hello. I am a teen hoping to start investing. I was wondering, what is a good online broker for a teen who as 500 or less to start with? Or do I need to save up more before I start investing?There are two kinds of stock buyers:Traders must spend a large proportion of their time finding, evaluating, buying and watching and selling their stocks. They pay a lot in broker's fees and taxes. They often brag of their successes but we seldom hear of their losses.Investors spend a lot of time finding and evaluating quality stocks which they don't have to watch like a hawk. Then they sit back and watch them grow.I take investing one step further and invest only in stocks that pay dividends. Right now three of the big name stocks we own are PNY, SO & WTR.Without going to a broker you can start DRIP accounts at PNY, WTR and SO for as little as $250 and/or setting up a monthly payment plan for as little as $50 a month. You can do this just by contacting the companies. NO broker = NO fees.PNY (Been paying a dividend for over 33 years.)Gives a 5% discount on reinvested dividends in its DRIP plan.)You can get more info and sign up here:http://www.piedmontng.com/investors/stockinformation/home.as...WTR (A fast growing water utility.)Gives a 5% discount on reinvested dividends in its DRIP plan.)You can get more info and sign up here:http://ir.aquaamerica.com/divreinvest.cfm(Note that both of these companies require that you be enrolled directly in their DRIP plans to earn the 5% discounts. Pseudo DRIPs through brokerages do NOT count and do not earn the 5% discount on reinvested dividends.)SO (Been paying a dividend for over 60 years.)You can contact them about starting an account and sign up here:http://investor.southerncompany.com/services.cfmWRE (Been paying a dividend for 39 years.)A REIT centered in Washington DC, it'll have renters as long as we have a government.You can get more info and sign up here:http://ir.writ.com/drip.aspx?iid=103036If you're into DRIPs you need to visit this site:http://dripinvesting.org/Tools/Tools.aspThere are guys & gals there who'll be able to answer your questions. Be sure to take a look at/ download/print out their U.S. Dividend Champions Both PNY and WTR will give you a 5% discount on reinvested dividends.As to your $500, I wouldn't hesitate a second in your position. I'd start DRIPs in each of the following stocks.PNY (gives 5% discount on reinvested dividends in their DRIP plan)WTR (gives 5% discount on reinvested dividends in their DRIP plan)SO (is a utility, like PNY & WTR, so you don't need to worry about them going out of business.) WRE (A REIT centered in Washington DC, it'll have renters as long as we have a government.)Put $250 in PNY & WTR to open the DRIPs then sit back and watch them grow! These companies use "Transfer Agents" which let you start a DRIP with them WITHOUT going through a broker and paying broker fees. They DO NOT charge for over the counter payments or reinvestment of dividends.I know it's tempting to want'a play Wall St. Wizard, but each trade through a broker costs you $$$ both buying and selling which means you've got to sell the stock for $$$ more than you paid for it just to break even.Only you can decide if you want the excitement of the Wall St. casinos or the safety of stodgy old dividend paying utility stocks.At your age the above stocks will be worth fortunes when you retire* if you just get'em started now and let'em grow.*yes, I know, but that time is coming sooner than you think.Desert (Time: it's what keeps everything from happening at once.) Dave-- (Quotation, with attribution, permitted and encouraged.)
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra