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DRIP Investing
Vs.
Traditional Brokerages

 

  The chief foil to investing success is the tendency to react emotionally to day-to-day stock price movements. Should you buy on the dip or sell? You won’t know until it’s too late.

 

The ease of action in a brokerage account entices you to act. With DRIPs, investors establish a plan to build holdings by making scheduled (or unscheduled) investments over a period of years until the dividends alone keep the account growing. This subtle difference accounts, for the success-advantage DRIP investors enjoy. 

 

The ability to diversify and to invest dollar amounts (instead of buying shares) makes the difference.  

 

If you want to end up with a lower cost per share than the average price of the shares during the investing period, you don’t want to be buying the same number of shares regularly—but you do want to invest the same amount of money. The difference will become clear as you read on. (A few traditional brokerages are now adopting measures to provide this advantages but it’s easier to implement in a DRIP portfolio.)

 

Here’s why those are two critical factors:

 

Diversifying among market sectors is an uncontested risk-reducing strategy. Diversifying holdings within a traditional brokerage account, where you generally buy in 100 share lots, is more limiting than diversifying among DRIP companies, where a small dollar amount is all you need to open an account (or as a shareholder by owning even a single share of company stock). 

 

Buy more, low--and less, high.


Read More

 

 

 

Microsoft Corporation (MSFT)

Available from the Temper Enrollment Service: No


Last Update On: 01/07/2021:

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL) Skype, Outlook.com, OneDrive, and LinkedIn and Dynamics 365, a set of cloud-based and on-premises business solutions for small and medium businesses, large organizations, and divisions of enterprises. Its Intelligent Cloud segment licenses SQL and Windows Servers, Visual Studio, System Center, and related CALs GitHub that provides a collaboration platform and code hosting service for developers and Azure, a cloud platform. It also offers support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions and training and certification to developers and IT professionals on various Microsoft products. Its More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings patent licensing Windows Internet of Things and MSN advertising. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices Gaming, including Xbox hardware, and Xbox content and services video games and third-party video game royalties and Search, including Bing and Microsoft advertising. It sells its products through OEMs, distributors, and resellers and directly through digital marketplaces, online stores, and retail stores. It has a strategic collaboration with DXC Technology. The company was founded in 1975 and is headquartered in Redmond, Washington. **Taken from Yahoo Finance**

Industry: Software
Minimum Investment: $25.00
Maximum Investment: $10,000/transaction
Shares to qualify: 1
Recent Price: 260.74
Investing Fee: $2.50+6¢/sh
Fee for Dividends: $0!

! = Company pays fees

Information is based on an annual survey and updated when company changes become available.

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