In their eagerness to be rich some have wandered away from
the faith and pierced themselves with many pains. . . . 1 Timothy 6:6-10
For years I was with Merrill Lynch and then switched to UBS. For years I did not see my bottom line increase too much, did was frequently told how well I was doing. I paid management fees whether I had gains or losses, and most seemed losses. I finally switched and opened up DRIP accounts with large massive companies; Blue Chips, Detroit Edison, Duke Energy, Coke, Pfizer, Diageo, GE, P & G. Doing fairly well. Great to excellent dividends compounded and growing. Very low fees, and I have total control, just need to do more foot work. Considering large funds like; GGT, GDL,CHY, UTG. I want compounded dividends to help keep the stock growing.I just wish I would have done this 30 years ago. I probably would have been sitting in a much better place.Comments?
A diverse portfolio of DRIP holdings can be a great strategy if you have enough money to build a diverse portfolio of companies. For those unfamiliar with the term DRIP, it stands for Dividend Reinvestment Plan. There also DSP or Direct Stock Plans. In either case, investors purchase stock directly from companies instead of through a broker.If you have money to create this kind of portfolio, it will wind up looking like an index fund. It does take a bit more work to set up.As for the trust share strategy recommended by the commenter, some research is required to make sure these entities are capable of earning and compounding their dividends. Sometimes these types of investments run into trouble over time.