Investing 102

[toy71camaro]

Originally Posted by GregWeld

You wouldn't accumulate any cash -- because all the dividend payout would be used to purchase additional shares.

The key to that is it's an accelerating vehicle... the more shares bought... the more dividend collected...buying more shares... paying more dividend and on and on. That's why it works!

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