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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

 

 

 

NiSource Inc. (NI)

Available from the Temper Enrollment Service: No


Last Update On: 01/07/2021:

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. The company operates through two segments, Gas Distribution Operations and Electric Operations. It provides natural gas service and transportation for residential, commercial, and industrial customers generates, transmits, and distributes electricity and wholesale and transmission transaction services. The company owns and operates two coal-fired electric generating stations with a capacity of 2,080 megawatts (MW) combined cycle gas turbine with a capacity of 571 MW three gas-fired generating units with a capacity of 186 MW and two hydroelectric generating plants with a capacity of 10 MW. It serves approximately 3.5 million natural gas customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, and Massachusetts and 476,000 electricity customers in the northern part of Indiana. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana. **Taken from Yahoo Finance**

Industry: Utility-gas & electric
Minimum Investment: $25.00
Maximum Investment: $250,000 year
Shares to qualify: 1
Recent Price: 25.62
Investing Fee: $5+5¢/sh.
Fee for Dividends: 5% of amount reinvested up to a max of $5

! = Company pays fees

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

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