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Message
If you had 5-10k to invest and you were in college now..
Posted on 4/3/13 at 3:31 pm
Posted on 4/3/13 at 3:31 pm
..would you try to find the next Apple or would you go with consistent blue chip high dividend stocks?
I have heard many on here say they wish they would have put some money in the market and let it sit back when they were in college. Well my plan in the next year is to find stocks to put about 5-10k in and leave it for 10,20, maybe even 30 years. It's money I don't need and I would love to have a chunk of change waiting on me down the road.
So bless me with your experience and words of wisdom... what would you buy with the mind set of never selling for a looooong time?
I have heard many on here say they wish they would have put some money in the market and let it sit back when they were in college. Well my plan in the next year is to find stocks to put about 5-10k in and leave it for 10,20, maybe even 30 years. It's money I don't need and I would love to have a chunk of change waiting on me down the road.
So bless me with your experience and words of wisdom... what would you buy with the mind set of never selling for a looooong time?
7
Posted on 4/3/13 at 3:37 pm to LSUTOM07
I'd go with blue chip dividend stocks on a drip. Very hard to find that one company thats going to be the next Apple.
Posted on 4/3/13 at 3:43 pm to Chris4x4gill2
quote:
Very hard to find that one company thats going to be the next Apple.
I guess Apple is a bad example. I mean more speculative plays like Newfield Exploration. Or companies that are struggling to get back on top like Bank of America, Citigroup, Nokia.
Companies like shell, coca cola, Conaco Phillips, or Phillip Morris for the larger dividend stocks.
Would the dividend plays be too slow growing with only a max of 10k invested?
Posted on 4/3/13 at 4:15 pm to Chris4x4gill2
I've always wondered...what's the best way to go about doing a DRIP?
Posted on 4/3/13 at 5:00 pm to LSUTOM07
With the longer timeline, I would go for a dividend stock. Sure, you won't make the Apple type of profit, but you also run less of a risk of losing it all on the company going belly up. Reinvest your dividends and take a possible stock split and run with it. Microsoft is a dividend payer that keeps its price low for a reason. They have done a ton of stock splits over the years to keep around $35 a share. Coca-Cola just had a split and also pays a decent dividend. Do some research.
Thats my $.02 fwiw
Thats my $.02 fwiw
Posted on 4/3/13 at 5:21 pm to BigBoyTiger
quote:
I've always wondered...what's the best way to go about doing a DRIP?
First, Find a stock you'd like to buy, investigate their DRIP on that Company's website under "Investor Relations". Look at fees, initial investment minimums, as these vary.
Next, Buy a share of stock. In most cases, you only need to purchase one whole share of stock to enroll in a DRIP, but some companies may require more. You must make the purchase directly through the program or transfer the shares from your brokerage firm, as the shares must be registered in your name.
Then, Complete paperwork to enroll in the DRIP. This paperwork varies from company to company and in some cases you may be able to register online. If you cannot find the applications, call the company's investor relations department or look for its transfer agent. A lot of companies use Computershare.com as their transfer agent. (link includes list of 600 companies offering DRIPs)
Finally, Monitor your accounts. Once you've completed the paperwork and sent it in, keep an eye on your DRIPs to ensure that all is working as planned.
I'll send you the bill for my services
Posted on 4/3/13 at 5:31 pm to LSUTOM07
quote:
..would you try to find the next Apple or would you go with consistent blue chip high dividend stocks?
I have heard many on here say they wish they would have put some money in the market and let it sit back when they were in college. Well my plan in the next year is to find stocks to put about 5-10k in and leave it for 10,20, maybe even 30 years. It's money I don't need and I would love to have a chunk of change waiting on me down the road.
So bless me with your experience and words of wisdom... what would you buy with the mind set of never selling for a looooong time?
Dividend stocks or Index Funds/ ETFs. If you are gonna try and find the next "Apple" or "IBM", don't put anymore than 10% of your nest egg into that 1 stock, because you will likely "guess" wrong. It's INFINITELY better to be wrong and lose (or have sub-par gains) on 10% of your investments. And if you happen to be right, it won't take a lot of shares to produce a big "Chunk of change".
Posted on 4/3/13 at 5:56 pm to Vols&Shaft83
Thanks bra....
Posted on 4/3/13 at 6:00 pm to BigBoyTiger
DO NOT DRIP COKE its trading at 20x earnings
Go for conoco phillips...COP...9x earnings, 4.5% dividend...you will get some kick arse growth
Go for conoco phillips...COP...9x earnings, 4.5% dividend...you will get some kick arse growth
Posted on 4/3/13 at 6:37 pm to ThaBigFella
quote:
DO NOT DRIP COKE its trading at 20x earnings
Ok, if he was gonna dump a bunch of cash into 1 stock all at once, and NOT Dollar Cost Average, I'm 100% in agreement with you, COP is a better deal than KO right now. But if he's investing in lump sums, then he shouldn't use a DRIP to buy shares, he should just use a brokerage instead of getting FEE raped. And besides DRIPs are way too slow to take advantage of mid day buying opportunity. A DRIP is designed for regular monthly investments, set amount, using dollar cost averaging.
If I'm looking to buy a lot of shares at once, I use my brokerage. If I'm looking for a place to put $50/month to "set it and forget it", a DRIP is a great option.
Posted on 4/3/13 at 7:17 pm to Vols&Shaft83
man coke drip is the worst...
Posted on 4/3/13 at 7:25 pm to Vols&Shaft83
If my brokerage offers a drip what is the difference between going through the company and going through the brokerage account?
Posted on 4/3/13 at 7:49 pm to LSUTOM07
go with the blue chip dividend stock...
Posted on 4/3/13 at 7:51 pm to LSUTOM07
Bitcoins
Posted on 4/3/13 at 8:02 pm to LSUTOM07
quote:
If my brokerage offers a drip what is the difference between going through the company and going through the brokerage account?
Usually Fees (through a broker, you pay the DRIP Fees, and the Broker Fees). Through an online broker, you have the advantage of buying/selling stocks at current market price, using options, calls, puts, etc.
A DRIP generally doesn't purchase your shares until 5 Business Days after they received your funds.
You can place a Day Limit order (an order to sell shares when and if the stock reaches a specific price on a specific day) or a GTC (good till Cancel order). But most DRIPs have a ridiculously high fee for this.
Posted on 4/3/13 at 8:48 pm to Vols&Shaft83
I dont know how other brokerages are but with E-trade I just buy, set on a drip and its just $7.99 one time fee and all additional shares added via the DRIP are free so thats awesome.....I hate how real DRIPs via the company charge you per share etc, its silly go with Etrade. Their mobile app is nice too
Posted on 4/3/13 at 9:07 pm to ThaBigFella
I have Regions (RF) in a DRIP, and it has never cost me. It's on the computershare listing above.
This post was edited on 4/3/13 at 9:08 pm
Posted on 4/3/13 at 9:36 pm to matthew25
Blue Chips with DRIPs. If you already have Scottrade like me sadly, (which doesn't have free reinvestment) I'd go with mutual funds which you can reinvest dividends with.
Posted on 4/3/13 at 9:44 pm to yellowhammer2098
I have tradeking. I will have to check on the fees to tomorrow but I don't think there are any fees associated with drip
Posted on 4/3/13 at 9:44 pm to ThaBigFella
quote:
I dont know how other brokerages are but with E-trade I just buy, set on a drip and its just $7.99 one time fee and all additional shares added via the DRIP are free so thats awesome.....I hate how real DRIPs via the company charge you per share etc, its silly go with Etrade. Their mobile app is nice too
Wasn't aware of E-trade's DRIP (technically Synthetic DRIP) program, I'd need to look into the proverbial "terms and conditions"
before I set one up that way. But if true, it's a great deal. Trade King doesn't charges for shares purchased by reinvested dividends, but does charge normal trading fees for monthly contributions, true DRIPs just avoid broker fees. This post was edited on 4/3/13 at 9:59 pm
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