Question About Directinvesting.com

[LuckyRobin]

Does anyone have any experience using the above website? I have been thinking about getting into a few DRIPs and this seems like the best way to do it without involving a broker. I don't want to make trades, I just want to invest in some solid dividend paying companies and reinvest and hold for the long term. So if you've used it can you tell me your experience with it and if you think this is the way to go? I only have $1000 to start with and will be adding $100 every month.

[Petunia 100]

I haven't used that site. Have you considered buying shares of an etf which focuses on blue-chip dividend payers instead of buying individual stocks? Something like this one:

http://money.usnews.com/funds/etfs/income-funds/schwab-us-dividend-equity-etf/schd

You can open an account at Schwab with just $100 and can trade their own etfs with no commissions.

I suggest you consider it, even if you decide against it.

[JulieAlbright]

I've never heard of that particular site. It seems similar to Sharebuilder.com which is now owned by Capital One. Sharebuilder is usually running some sort of new account sign-up bonus.

[LuckyRobin]

Julie, Sharebuilder requires you to make 12 trades a year. I don't want to be trading, just buying and holding.

Petunia, I'll look into that, but really I'm just looking at certain stocks. 3M, Abbott Labs, Conoco Phillips, Proctor and Gamble, PepsiCo, Aflac, and General Electric. That will give me diversity within stocks that have performed well long term and issue good dividends.

[Petunia 100]

Scamadviser says it is a legitimate site.

http://www.scamadviser.com/check-website/directinvesting.com

I know Ima Saver and Baselle both do DRIP investing. Have you asked them if that site is OK to use?

Edit: DRIPinvesting.org recommends getting started with directinvesting.com. That would make me feel secure.

http://dripinvesting.org/first-share/

[LuckyRobin]

Baselle hasn't been around in ages and doesn't answer messages. I'll ask Julie, but I got the impression that she's just had those stocks for ages.

[Petunia 100]

I was just now reading SingleGuy's blog, and his sidebar says he has 35k in Drips.

[snafu]

I've been buying Drips from my earliest investments. Do you already have a brokerage account? Do you hold any of the mentioned stock preferences 3M, Abbott Labs, Conoco Phillips, Proctor and Gamble, PepsiCo, Aflac, and General Electric? If so, you merely file the forms for DRIP, track the ex-dividend date for each of the stocks you hold and complete a 'buy' order for that day before the market closes. The point is that rather than receive a cash dividend or have it automatically deposited in your account, you are asking to re-invest the sum in more shares of that specific stock. If you do not hold shares yet, buying a lower fee Dividend MF helps accumulate the major sum needed. The point is to buy shares when they are of lower value because there is is huge disbursement of cash going out for those shareholders like Julie [I'ma Saver] who draw down cash. These transactions are easily done on-line.

Please double check because I'm in another country and we may use terms differently. I believe when Sharebuilders.com use terms like 'trades' they likely would more accurately be termed 'transactions.' Likely must do 12 transactions per year, buy units, 12 times in the year. Dividends are usually quarterly so you'd buy GE stock 4 times a year. Some stocks have annual patterns when it's particular segment hits a trough [buy] and almost considered 'sale priced.' Best time of year to buy oil/gas stock [Conoco Phillips] is late December early January. If at some point in the future you choose to sell, it would be May.