Please login below, for login help The Moneypaper and the News Media
The
Wall Street
Journal
"...Ms.
Nelson is a strong
supporter of a DRIP
strategy. 'There
are still hundreds
of DRIPs that are
low cost-- enough
to build a fabulous
diversified portfolio,'
she says."
Forbes
"Vita
Nelson, editor of
The Moneypaper,
points out an overlooked
way to sock away
money tax-free for
your offspring:
put them to work
for you."
Physicians
Money Digest
"The
[MP 63] fund is named after Nelson's
brainchild, The Moneypaper 63
index, [which] according to Nelson,
has out-yielded the Dow by 163%
to 149% throughout the past 5
years."
Consumers
Digest
"The
Moneypaper has
created a
service that
holds your
hand through
the whole
[DRIP sign-up]
process..."
Barron's
"Editor
and
Publisher
Vita
Nelson
in
her
November
issue...
put
seven
growth
companies
on
her
shopping
list..."
Business
2.0
"In
1986, Vita Nelson
had already been
promoting direct
investing for a
few years, perhaps
one of the first
attempts at middleman
slashing on the
financial services
space."
Barron's
"[For]
holiday gift giving...
Editor and publisher
Vita Nelson suggests
a share of stock
in a company that
permits direct investment."
Buy shares of companies in the stock to reach. . .
April 15, 2014
Purchase shares of companies listed on the Stock Exchange is unthinkable for thousands of people.
However, any person or family of low or middle income can invest small amounts in shares of the world market simply and without an intermediary.
The 12 Percent Investment Research Newsletter
March 25, 2010
So should you pile all your savings into these stocks today? Not at all...
The stock market has enjoyed a historic rally over the last year. The rally
could continue, but I think a pullback - maybe even a sharp pullback - is
more likely. These blue-chip stocks will likely fall with the rest of the
market, although to a lesser degree.
DRIPs are the solution...
How to buy stocks really, really cheap through DRIPs March 15, 2010
If someone can't quite get himself or herself to do something so daring as to invest in the stock market, there's a wonderful solution.
DRIPs. Dividend reinvestment plans. Companies that allow you to buy their dividend-paying stocks directly, bypassing a stockbroker.
DRIPs allow people to invest in stocks with a mere $10 or $25 or $50 at a time. And with no commissions. So, even if you're as poor as a proverbial church mouse, you can afford to get your feet wet. (Block that metaphor!)
Another benefit of DRIPs: You can dollar-cost-average all you want. You can invest small sums of money every day — every week, every month, every six months — whatever. Of course, your dividends are automatically invested in new shares..
NYTIMES.COM Nov 3rd, 2009
Dividend reinvestment plans, commonly referred to as DRIPs, offer a way to start investing with a very small amount of money and with nominal fees.
Here is some basic information about DRIPs:
WHAT THEY ARE:
Dividend reinvestment plans are programs offered by many companies that allow investors to buy shares directly in the company (often through a transfer agent) without facing brokers' commissions. Dividends can be reinvested automatically, increasing the number of shares held. Most DRIPS charge very low or no fees...
Kiplinger Oct 30, 2008
It
may be the perfect
time to set up
a DRIP, or dividend-reinvestment
plan. In uneasy
times, a DRIP offers
you a way to nibble
at lower-risk shares
that's affordable,
fee-friendly and
enforces the kind
of investing habits
we at Kiplinger's
like to encourage.
DRIPs are great for risk-averse investors because they focus on dividend-paying stocks, which provide cash cushions even if share prices continue to tumble. Dividends won't protect you from stock-market carnage (just ask anyone with a stake in financial stocks), but you'll be paid while you wait for better days....
Because of the market upheaval, DirectInvesting.com has opened up its entire database -- parts of which are usually reserved for members -- to the public. "The next couple of years are a time to regroup. We've made our search criteria available to everyone. We did the same thing in 1987," says Vita Nelson, editor of the Moneypaper, whose parent firm runs the Web site.
-Anne Kates Smith (Kiplinger)
Reuters Oct 17, 2008
More
than 1,300 companies, including
Coca-Cola (KO.N: Quote, Profile,
Research, Stock Buzz) and
Johnson & Johnson
(JNJ.N: Quote, Profile, Research,
Stock Buzz), offer direct
investment plans that enable
shareholders to buy stock
directly from the company,
in small amounts, while avoiding
brokerage fees.
They are also known as dividend reinvestment plans, or DRIPS, as they use dividends paid to buy more stock, enabling investors to slowly build their positions.
"There's no broker involved -- that might be a reason why people are calling us now. You have the risk of your broker failing totally removed," said Vita Nelson, editor of the Moneypaper, based in Rye, New York
-Kristina Cooke (Reuters)
Investment
News September 8, 2008
Vita
Nelson, chairman of Temper
of the Times Investor Services
Inc., editor of the Moneypaper
newsletter and co-portfolio
manager of The MP63 Fund
Inc., all in Rye, N.Y., believes
that dividend reinvestment
programs are the best way
to build a diversified portfolio
of stock holdings over an
extended period of time.
Aside from her mutual fund,
she sets up such programs
for clients for a one-time
enrollment fee of between
$25 and $50 for each account.
These accounts allow clients
to reinvest dividends or
invest new money into the
stock directly with the company
anytime, although investors
can set them up without anyone's
help.
"If
you're trying to build up
holdings, then dollar cost
averaging is the most efficient
and effective way of doing
that," Ms.
Nelson said.
Dividend reinvestment
programs are for people who
prefer to do their own research
on companies, who plan to
invest on a regular basis
in the companies to build
up their holdings and who
don't want brokers hounding
them all the time with the
latest news on another stock,
she said.
-Janet
Morrissey (InvestmentNews)
The
Boston
Globe July 23, 2008
Over the past 20 years, reinvested dividends have accounted for more than 40 percent of the total return of the Standard & Poor's 500 stock index.
"You
are getting the
cash flow from the
dividend and the
potential for growth," said
Mari Adam, a certified
financial planner
in Boca Raton, Fla.
With the growing
threat of inflation,
nervous investors
who move all their
money to certificates
of deposit run the
big risk their money
won't keep up with
rising prices.
Two
other newsletters,
The Moneypaper
and DRIP Investor,
focus on dividend
reinvestment plans.
The editors of The
Moneypaper created
and monitor a 63-stock
index of dividend-paying
stocks that has
outperformed market
averages since
its inception in
1994, and run a
mutual fund that
invests in the stocks
in the index.
-Humberto Cruz (Boston Globe)
Canadian
MoneySaver June, 2008
Dave
Fish, co-manager
of the MP63 Fund,
a mutual fund based
on DRIPs, and writer
for Moneypaper magazine
keeps an updated
list of U.S. companies
that have increased
their dividends
over each of the
previous 35 years.
-Robert
Gibb (Canadian
MoneySaver)
Chicago
Tribune May 25,
2008
Core
component
DRIPs
should be considered
core portions
of a long-term
portfolio because
they tie up money.
They weren't designed
for investors
to jump in and
out, but rather
offer them a chance
to start small
and build gradually.
Starting a DRIP might be a prudent way to spend an economic stimulus check.
"The concept behind the government's economic stimulus check is to spend that money, but it would be smarter to use it to invest in a diversified DRIP portfolio of stocks," said Vita Nelson, editor of The Moneypaper in Rye, N.Y., which has a searchable DRIP directory on its site www.directinvesting.com. "By continually investing in core companies that aren't going to disappear, you can take advantage of market volatility."
A sample diversified portfolio of no-fee DRIPs from Nelson includes life and health insurer Aflac Inc.; tool and appliance maker Black & Decker Corp.; beverage firm Coca-Cola Co.; spirits, hardware and golf company Fortune Brands Inc.; and health-care giant Johnson & Johnson.
"Select five or six companies, each from a different industry, and then fund their DRIPs monthly, quarterly or annually over the years," Nelson said. "Many DRIPs allow automatic debiting from your bank account, so you can take the market out of the equation and not go nuts over it."
-Andrew Leckey (Chicagotribue.com)
The Oregonian December 10, 2006
Whether you want to give a gift of stock this holiday season or launch a long-term investing plan for yourself, there are several ways to accumulate shares a few at a time…
GiftsofStock.com
A subsidiary service of The Moneypaper newsletter based in Rye, N.Y., GiftsofStock.com allows you to buy one or more shares of stock and then enrolls you into the company's no-fee dividend reinvestment plan.
"It's particularly good for young kids," says Vita Nelson, publisher of the newsletter, allowing for the gradual accumulation of shares without a lot of extra costs. Parents can customize a "stock" certificate at the Web site and download it for something to put under the tree, but the real shares will be held electronically in the company's plan.
Among the 50 or so stocks Nelson includes on the suggested gift list at the moment are Hasbro Inc., Avon Products Inc., Fortune Brands (maker of Titleist golf balls and Jim Beam bourbon), 3M Co., and Bank of America Corp.
The bookkeeping isn't as hard as you might think, Nelson says. You can use a "portfolio keeper" tool at another Moneypaper Web site, www.directinvesting.com, she says. Or just keep your last dividend reinvestment statement, which summarizes account activity for the full year. When you sell shares, you can refer to the statements for how much extra you invested over the years. Add that to your original investment to get your basis.
–
Julie
Tripp (The
Oregonian)
USA
Today August
11, 2006
Some
companies, like
General Electric
(GE), Home Depot
(HD) and Procter & Gamble
(PG) let investors
buy stock directly
from them. P&G,
for instance, accepts
initial investments
in its Shareholder
Investment Program
for as little as
$250. Ongoing fees
include a one-time
$7.50 setup fee,
a $1 fee each time
you add money to
your P&G
account from your
bank account and
a 2-cents-per-share
commission. There's
also a $10 fee when
you sell stock.
These fees are fairly
reasonable.
But
as good as these
programs are, there
are drawbacks. First,
to create even a
slightly diversified
portfolio you'd
need accounts with
dozens of companies.
Managing all those
accounts would be
problematic. Next,
not all stocks you're
interested in have
direct-purchase
programs. Last,
all the programs
are different, so
it's difficult to
remember the rules
and fees of each.
You can see which
companies offer
these programs at
websites like: DirectInvesting.com. –
Matt
Krantz
The
Early Show/CBS June
20, 2006
Dividend
reinvestment plans
are a way for people
to buy stock directly
from the company
(usually through
a transfer agent)
in very small to
large amounts, and
usually on a monthly
basis if desired.
These plans get
their name from
the fact that they
also allow shareholders
to reinvest the
dividends they receive
from their shares,
using these dividends
to purchase more
stock. Thus the
name "Dividend
Reinvestment Plan," or
DRIPs. DRIPs are
offered by almost
1,000 companies — from
AFLAC to Yahoo — and
by using DRIPs,
you can invest in
a stock directly
without a broker
and often without
any additional fees
or commissions.
And best of all,
to start you only
need enough money
to buy one share
of the stock.
DRIPs
are a way to begin
investing with a
very small amount
of money and to
keep investing monthly
(or as frequently
as you can afford)
in small amounts
by and reinvesting
dividends and making
additional contributions,
while avoiding brokerage
commissions. In
the long term, it's
a great long-term
way to grow money.
You have dollar-cost
averaging working
for you and you're
investing, ideally,
in great companies
that you don't foresee
selling for a long
time.
Of
course, one downside
of DRIPs is that
you may end up investing
in the stock of
one company, and
this can mean more
risk than you are
willing to take
with your precious
savings. So it's
best to carefully
choose the stock
or stocks and look
for stocks of mature
or blue chip companies
that pay above-average
dividends to shareholders. –
Ray
Martin (CBS/The
Early Show)
Bottom
Line Personal July
15, 2005
Since
the first dividend
reinvestment plan
(DRIP) was introduced
in 1969, hundreds
of companies have
offered investors
the option of buying
shares directly-and
reinvesting dividends
into more shares
without a broker.
Now there's evidence
that these plans
(also known as direct
reinvestment plans
and direct stock
purchase plans)
are a wise way to
identify winning
stocks and beat
the market as well.
Since
its inception, the
MP 63 Index of DRIP
stocks, developed
by my company, is
up by 248%, versus
168% for the S&P
500 Index. That
gap would be even
wider if you factored
in stock transaction
fees, which can
be avoided with
DRIPs.
Why should companies that let individuals invest
directly outperform the rest of the market? Likely reason:
Companies that go out of their way to make buying their shares
cheap and convenient also go out of their way to deliver good
returns to shareholders. Plus their shares are widely held, and
investors tend to buy their products and services. – Vita
Nelson, interviewed by Bottom Line Personal.
MarketWatch,
PAUL B. FARRELL April
10, 2005
Don't
trust brokers? No
confidence in fund
managers? Cut out
the middleman. Here's
how: Buy stocks
directly from a
company. Become
one of America's
DRIP investors.
Never
heard of them?
I'm not surprised.
Vita Nelson, editor
of the Moneypaper newsletter,
calls corporate
dividend reinvestment
programs, or DRIPs,
the "best-kept
secret on Wall
Street."
Most
people haven't
heard about them
for one simple
reason -- companies
can't advertise
their DRIPs. Why?
Because brokers
and fund managers
can't sock you
with big fees
and commissions
if you buy stocks
directly from
a company. So
they won't tell
you the "best-kept
secret" and
they've made sure
Congress and the
SEC keep it a
secret too.
But
I can tell you.
DRIPs are a great
way to get on the
dividend bandwagon.
DRIPs are a simple
way to invest dollars
and reinvest dividends.
DRIPs are a great
long-term saving
plan that can help
you build a retirement
portfolio of solid
blue-chips.
Los Angeles Times November 28, 2004
"Instead of the cake, give them Sara Lee stock," said Vita Nelson, editor of an investment newsletter called the Moneypaper. "In the future, they can buy as much cake as they want."
Aside
from imparting knowledge,
the gift is also
likely to pay even
more tangible returns.
A $5,000 investment
in a Standard & Poors
500 index fund in
1984 would be worth
more than $57,000
today.
More
than 1,000 companies
allow investors
to buy stock directly
from them, often
with no trading
costs at all, Nelson
noted. When those
shares pay dividends,
the company will
automatically reinvest
them in company
stock, allowing
the account to compound.
Among
the big-name corporations
that offer these
so-called dividend
reinvestment plans
are BellSouth
Corp. (cellphones), Avon
Products Inc. (makeup), General
Motors Corp. (autos)
and Limited
Brands Inc. (apparel),
Nelson said. All
of these companies
make products that
can resonate with
a teen, she said.
To
register with many
corporate dividend
reinvestment plans,
the investor must
first own at least
one share of the
company's stock.
The Moneypaper offers
a stock-giving service
that helps investors
buy the first share
and register with
the dividend reinvestment
plan.
"Maybe,
for a little kid,
you want to buy
a miniature motorcycle
to go with the share
of Harley-Davidson
stock — or
give nail polish
with Avon shares — so
the kids can picture
it better," Nelson
said.
"But
if you can inculcate
an investing attitude
at a young age,
you'll find those
kids will be able
to take care of
themselves better
in the end.
"Starting
early is such a
wonderful advantage."
The Bull & Bear Financial Report July 2004
If you sell too soon, you may lose out on immense future gains; sell too late and you might watch your gains evaporate or your losses mount.
There are no easy answers, but here are some tips to consider:
When
a stock moves
up to the point
where you can
sell part of a
position to get
your money out
and still maintain
exposure to the
stock, sell. Suppose
you bought 300
shares of a $20
stock (investing
$6,000), which
moves up to $60.
You might sell
100 shares to
get your money
back and leave
your profits on
the table.
There
are core holdings
that you intend
to keep forever,
growing along with
the company. Don't
sell them. Investors
who hold onto great
companies are likely
to beat traders
over the long term....
PRWeb
Newswire February
14, 2004
The
MP 63 Fund (DRIPX)
Outperformed Every
Fund in its Category... Read
more
Nightly
Business Report August
20, 2003
"MILLER:
More than a thousand
companies offer dividend
reinvestment plans,
including all 30 Dow
companies. Many firms
offer the plans to
raise capital and
help broaden the investor
base. "
"VITA
NELSON, EDITOR, "THE
MONEYPAPER":
We think that they're
extraordinarily
good companies,
that they're shareholder
oriented. And we
think that the DRIP
itself helps the
company's stability
in the marketplace
because they have
so many investors
investing regularly. "
Fox
News September
8, 2003
"General
Electric (GE) Vita
Nelson, president
of The
Moneypaper:
MAKER Well, I can't
say I like it now.
I've liked it for
a long time. We
believe in dollar-cost
averaging and continually
picking up more
stock in the same
company. We've held
it for a long time.
All the companies
in our MP63 fund
have been there
since the beginning,
its like an index
fund."
Johnson
& Johnson
(JNJ) Vita Nelson:
MAKER
We
like these companies
for long-term holding.
They have brand
names like Band-Aid.
Everybody knows
these companies;
everybody uses their
products. The most
important thing
about both companies
is that they increase
their earnings consistently
and consistently
increase their dividends." ...Read
more
Black
Enterprise August,
2003
"The
process to open an
account can take
several weeks. You
can also access DRIPs
at DirectInvesting.com
(www .directinvesting.com)
by opening an account
with the Temper Enrollment
Service for $30.50.
(Temper's fee is
less if you pay a
subscription fee of
$50 to $199 for additional
investment resources
on the site.) Temper
handles all the paperwork
and can open your
account in four to
six weeks." ...Read
more
CNN.com October
24, 2001
"Answer:
In response to your
letter, I asked
for a comment by
Vita Nelson, editor
of the Moneypaper
newsletter, long-time
advocate of dividend
reinvestment plans
and manager of the
MP 63 Fund, which
invests in 63 companies
that offer such
plans."
"The
writer of the
letter is correct,
of course, about
management that
heaps excess rewards
upon itself, in
effect plundering
the corporate
treasury, often
with the assistance
of the board of
directors," Nelson
said.
She
also said, "Ultimately
investors must vote
with their feet
and abandon companies
that are heading
down such a destructive
road. But it's also
important to avoid
lumping greedy management
in with companies
that pay small dividends,
since the connection
may only be coincidental." ...Read
more
Fool.com July
19,
2000
"Hearing
this, I contacted
Temper of the Times.
What Temper can do
for $20 is purchase
our first five shares
of Pepsi stock in
certificate form (in
our name) and have
Pepsi's DRIP enrollment
form sent to us. This
way, all that we need
to do is sign the
form and mail it to
the Bank of New York.
After that we'll be
enrolled. So, Temper
will take care of
buying the Pepsi shares
for us and will send
us the plan form to
enroll. We take it
from there with one
easy step -- mail
in the enrollment
form. And then wait." ...Read
more
International
Herald Tribune January
29, 2000
Vita
Nelson, an investment
adviser who runs
The Money Paper
and advises on DRIPs,
urged investors
to stick to companies
that require a single
share to qualify
for direct investing
or dividend-reinvestment
plans, rather than
the $200 or $250
minimum required
by many bank-sponsored
plans.
Mrs.
Nelson also keeps
a sharp eye on
plans that charge
what she terms
''excessive fees''
for cash investments,
reinvestment of
dividends or the
sale of shares.
After all, if
the goal is to
build up a position
over time in small
increments of
as little as $50
a month and to
reinvest dividends,
large fees are
counterproductive.
DRIPs, she said,
should be a ''way
to level the playing
field between
small investors
and big institutions."...Read
more
International
Herald Tribune July
17, 1999
"Still,
as a result of the
new rules has been
an explosion of
companies offering
dividend-reinvestment
plans, which this
week stood at 1,272,
according to Vita
Nelson, editor and
publisher of the
Money Paper, another
newsletter and one
associated with
a company that helps
investors buy shares
in these companies.
Investors outside
the United States
can participate
in 986 of those
plans, she said,
and there are growing
numbers of foreign
companies whose
American depositary
receipts offer DRIPs." ...Read
more