Thread: Investing 102
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Old 06-14-2013, 02:09 PM
WSSix WSSix is offline
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So I found out something that's a little odd, to me anyway, but might be something the rest of you may come across as well. A little while ago I decided to gamble with a purchase into Mid Con Energy Partners, MCEP, which is a Master Limited Partnership. They are a dividend paying stock and a fairly new company. Apparently, I'm not allowed to reinvest my dividend immediately. I'm with Vanguard and that's what the brokerage service person just told me. He indicated it's up to a manager to decide this but that it's most likely because trading volume on the stock is low. I'm thinking it's because it's a small and fairly new company since after all, I have KMP as well which is also a MLP but I roll my dividend over immediately ever quarter.

It kind of sucks because it takes away that second compounding effect that we get investing in dividends but I'm still getting paid cash and pretty good cash at that, 0.51 a share. I wish I would have known this before I bought the stock but then again, it is nothing more than a gamble for me. I also imagine that if it's because the company is small and new that I shouldn't really have this issue occur with future acquisitions that will be into larger established companies, ie less of a gamble on my part.

Just thought I'd pass along what I learned.


As for Lululemons, unless they come up with a different more "manly" logo for their men's line, their name alone screams feminine. I think that would be a hindrance but that's just my opinion. Best of luck to them but honestly, until your first mention of them I had never heard of them at all.
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