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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

 

 

 

Cisco Systems Inc. (CSCO)

Available from the Temper Enrollment Service: No


Last Update On: 01/07/2021:

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data. The company also offers collaboration products comprising unified communications, Cisco TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, it provides security products, such as network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products and cloud and system management products. Further, the company offers a range of service and support options for its customers, including technical support and advanced services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with Internet2 to deliver next-generation capabilities and software solutions and Tele2 Iot on connectivity management platform 2CONTROL. Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California. **Taken from Yahoo Finance**

Industry: Computer Hardware
Minimum Investment: $50.00
Maximum Investment: $250,000/year
Shares to qualify: 1
Recent Price: 52.80
Investing Fee: $5+5¢/sh.
Fee for Dividends: 5% of amount reinvested up to a max of $3.00

! = Company pays fees

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

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