The biggest advantage of traditional drip with spp email list over synthetic drip is that you can buy additional stock with no fees or fees. The overall drip allows for the reinvestment of dividends in partial shares. Another advantage is that some dividends can be reinvested by buying stock at a discount on the market price. You can also start with a small amount of money enough to buy one share of the company. Cons: disadvantages: one of the disadvantages is that you must have already purchased one share of the company to participate in drip. Another problem is that if you want to buy or sell stock at the current market price, you can't.
In addition, most drip plans have a high initial setup fee, even though the fees for purchasing additional shares and reinvesting dividends are low or none at all. From a diversified investment perspective, drip investors should enroll in as many plans as there are individual companies planning to invest. This is an inefficient way to track your investment. Also, not all email list offer drip, so you may eventually need to use a broker. Conclusion: from a long-term investment perspective, if you don't reinvest your dividends, you're missing out on one of the easiest and most reliable ways to increase your profits.
Drip may look like a "Boring" investment that takes email list time in return, but the long-term benefits of these investments are clear. Using drip today is a low cost way to build wealth through stocks that pay dividends. Let's add a rider to this. In other words, if you can match the dividend income from your savings, you are buying stock at virtually half the price. And when you reach that point in your life that needs a stable flow of income to fund your retirement, you have a large amount of stock paying a very healthy yield. Will be. The bottom line is whether you're 20 or 60, or anywhere in between, drip will start making your next egg or make up for the setbacks your retirement fund may have suffered in recent years. It's a surefire way.