Call Us Toll Free: 1-800-388-9993

_______________________

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

 

 

 

Freeport-McMoRan Inc. (FCX)

Available from the Temper Enrollment Service: No


Last Update On: 01/07/2021:

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona Tyrone and Chino in New Mexico and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2019, it estimated consolidated recoverable proven and probable mineral reserves totaled 116 billion pounds of copper, 29.6 million ounces of gold, and 3.58 billion pounds of molybdenum, as well as operated approximately 210 wells. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was founded in 1987 and is headquartered in Phoenix, Arizona. **Taken from Yahoo Finance**

Industry: Mining
Minimum Investment: $50.00
Maximum Investment: $120,000/year
Shares to qualify: 1
Recent Price: 38.14
Investing Fee: $5+6¢/sh.
Fee for Dividends: 5% of amount reinvested up to max $3

! = Company pays fees

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

Click for Español

FOR MORE
INFORMATION

And a free copy of The Moneypaper's direct investing brochure, please enter your contact information below.

You will also be signed up to receive our monthly stock special.

You can unsubscribe at any time. We do not share your email with anyone.

By email, you get the Monthly “Stock Special,” where the service fee for enrollment in a great DRIP stock is reduced.

* Required Field.