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CTSSHAH
@ctsshah
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#DRIPinvesting #InvestopediaCliffNotes So I'm actually pretty pumped about this weeks morning learning line-up and corresponding videos. Today is the popular #DRIPmethod and then Tu - #SwingTrading , Wed - #OptionsTrading , Thu - #DayTrading (not to be used on Public), and cap it off w/ Fri - #DefensiveInvestor . These posts/videos are far from being comprehensive but meant to give #NewInvestors some ideas of what styles of investing are out there. The Breakdown: - DRIP stands for Dividend Re-Investment Plan - which is where dividends are used to purchase more stock in the same company - Essentially a form of dollar cost averaging as you are reinvesting a set amount at a regular interval - How do I start DRIP investing -> look to other dividend investors like @jmag77 Where can I find out if my stock has a dividend in Public: - Click on your stock then go to "Earnings & More" then look for Dividend Rate and Yield - If you want to do DRIP investing make sure you go to 👤, then ⚙️, then scroll down to Account and click "Dividend Reinvestment," and then click Auto-reinvest my dividends What should I know about DRIP method before investing: - Dividend payouts can be reinvested as fractional shares and these fractional shares can also produce proportional dividend payouts at the next dividend payout - DRIP can add shares at a lower cost if avoiding commissions or brokerage fees for adding - Some companies will offer shares at a discount for reinvesting dividends as this way the company issues stock and raises that money back as capital What downsides do I need to know about DRIP method before investing: - Dividend income is taxable income either as Ordinary or Qualified dividends (can be avoided if kept in retirement savings account) Resources: Investopedia / Video: https://www.youtube.com/watch?v=NP9_rM3Xbko P.S.: So if you are lost or confused and have some questions that you want answered, feel free to comment below so that I can answer them there and maybe help me brainstorm ideas for future content ... tough keeping up w/ all this. #TheMoreYouKnow #FeedYourBrain #GrowthNotGreed #InvestingStyles
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Brendan@brendanschema
DRIP💧is such a important topic. This can be your ticket to financial freedom! DRIP is the basis of compound interest, the 8th Wonder of The World 🌎 Having dividends reinvested over a 20/30 year span will help to grow your portfolio exponentially! Great post ‼️ @ctsshah
Jason G 🏴‍☠️🇺🇸 photo
Jason G 🏴‍☠️🇺🇸@jmag77
I #lovethedrip !! It's like getting paid interest on my investment. The company is saying "thank you for investing in us, here's a little more". Then that little more you got is going to pay you a div too. It's like compounding interest. To see a real world example of how the #drip affects your investment over time check out my #dripstudy . Just started it this month and first divs will be paid i…See more
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Andrew@celtic
Thanks for the info. As always great work 👏 @ ctsshah
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Andrew@celtic
Use drip and like it
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Ayana Parham@aparham
This was really interesting thanks for sharing
CTSSHAH photo
CTSSHAH@ctsshah
Thank you @brendanschema ! Compounding is a wonder to behold. I remember reading about it in a book and seeing the exponential growth curve ... and was like "can I have your number" https://www.youtube.com/watch?v=kTFZyl7hfBw
CTSSHAH photo
CTSSHAH@ctsshah
@jmag77 I'm excited to get 6 months into your #DripStudy ! And your breakdown for your September monthly dividends / mailbox money 📬💵 @celtic you are always welcome! and DRIP is great @aparham glad you found it interesting! 😁
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Brendan@brendanschema
😂 @ctsshah It was the main reason I got started in investing and I didn’t even know it. Maybe I show make a story time about it👀
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CTSSHAH@ctsshah
😂👍 yes
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Amara@lorri
Thanks very much for this great info @ctsshah
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Lunch Money💰@DanaGeorge
I have an entire portfolio devoted to dividend stocks. It’s easier for me to view the progress and stay motivated. I use Ameritrade because it’s interface is user friendly It’s dividend income estimater is my favorite tool! I started a few months back making $33 a month - now it has tripled.
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Jen43@Jen43
❤️ #dripmethod
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Vince Mao@vincecmao
Great digest! Investopedia is an excellent resource but can be a overwhelming at times! DRIP is a great approach to keep an investment growing at a steady pace without you having to constantly babysit your portfolio. Thanks for the post!
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ScottyTaters@Taterscott
Thanks for this info @ctsshah . I was apprehensive at first about learning to invest, but your pointers are making this much easier. Even fun!
Jason G 🏴‍☠️🇺🇸 photo
Jason G 🏴‍☠️🇺🇸@jmag77
@DanaGeorge . What are your fav top 3 div stocks? my portfolio on Public is devoted to divs. I get so excited when I discover new div investments; sometimes I catch myself adding too much to my watch list. 😆 All month it's just Cha-ching getting paid 💰 🤑 💸
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Tiphanie@Rafterriffic
Thank you for posting this! I just just clicked my dividend reinvestment on. 👍
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CTSSHAH@ctsshah
@lorri my pleasure @DanaGeorge I think dividend portfolios are awesome especially for whenever people decide to either fully retire or semi retire and pursue what interests them and not just money @Jen43 💙👍
CTSSHAH photo
CTSSHAH@ctsshah
@vincecmao It is one of the best resources out there but when you are new it is hard to know what to search. So i'm trying to take the time of building out these posts here and YouTube videos on my channel so that each week builds upon the next like a school curriculum. Glad you enjoyed the post! @Taterscott I want to do whatever I can to prove to you that it doesn't have to be scary, time consumin…See more
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Damian@damiandoesit
I was wondering if it would be a good idea to turn off drip and combine all the dividends into one stock instead?
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CTSSHAH@ctsshah
So the idea is the reinvest the money into the same stock as this is a way of dollar cost averaging regardless of the market. But reinvesting the money into something is probably the crucial part. @damiandoesit
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Damian@damiandoesit
Yeah but if you put it all into a different stock your average price is zero 🤣
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Damian@damiandoesit
My idea was to find the stock that brings you the most drip and put it all there... But now that I say it out loud.... Why not just put all your money into that stock to begin with? (I know diversification)
CTSSHAH photo
CTSSHAH@ctsshah
So that is the beauty of just finding a broad fund that pays dividends to begin with. So I use $VT , $FDIS , and $FTEC for a large chunk of my individual brokerage account and just auto reinvest any dividends.
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Damian@damiandoesit
Got another question. I feel this is a good one. (I will use easy math) let's say you buy one stock with dividends and it's about ready to pay out. Then you buy a second stock after the x-date Will you get the dividends from both stocks or just the first one?
CTSSHAH photo
CTSSHAH@ctsshah
So the date of record or the ex date is when you have to hold it. If you hold it after you miss out on the dividend pay. There is generally price movement closer to that date that I think honestly already takes all that into account. @damiandoesit
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