Investing 102

[GregWeld]

Originally Posted by toy71camaro

I mean with Drip turned off.. you'd have the dividend payments sitting on the sidelines collecting dust each quarter.

With drip turned on, yes, we're taking the quarterly div payment and buying more shares at the current rate (helping our dollar cost average)..

Now, I wrote that for the general public. I know you know what drip on/off is.. lol

Yeah..... pretty much....



DRIP investing is a great way to really kick a portfolio in the bee hind.... It will automatically purchase shares for you... so dollar cost averaging is working (buying more shares when the price is low and fewer shares when the price is high).. but it's really the COMPOUNDING affect that works the magic!