Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
The only strike I have against DRIPs is that they're a bit of an administrative burden. With discount brokers trending down toward $5 per trade, I'm wondering if going that route isn't more convenient.

Points well spoken. But really - if you have $50 to blow on some stock one month, it's not likely you'll send it to your broker - it would have to get down to $1/trade before your costs are under (or, more specifically, at) 2%. Many DRiPs charge nothing to make an OCP (optional cash payment). And what's more, with that $50 in your DRiP, you can pick up fractional shares if they aren't trading right at $50 even - and even that fractional share will start working for you right away. I think for a C-K position, DRiPs are an excellent (albeit high in administrative cost) option...
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.