02-03-2015, 06:08 PM
(This post was last modified: 02-03-2015, 06:11 PM by Dividend Watcher.)
M$$I, your method sounds good too.
I think the point that I was looking at is company-sponsored SPP/DRIP programs are a super way to begin accumulating shares when you don't have a chunk of change to plunk down on a larger buy. Some people don't have money overflowing their pockets to be able to do that and the SPP/DRIP is a perfect way to begin a regular investing habit. I'm not sure there are many people contributing large sums to these plans versus using a discount broker. You have so much more control when you have the resources to make the commission irrelevant.
DRILL, so far I haven't seen a catch with Loyal3 either except you're limited to the companies you can invest in. According to their latest listing, PG wouldn't be available but PEP, KO, DIS, etc. are. I haven't signed up yet so maybe the devil's in the details but it looks pretty straightforward. Your PG example is one of the reasons you have to pick through Computershare's and the other custodians' listings.
The downside is you don't get to choose very specifically when the shares are purchased. Some plans invest on certain days/dates so you can approximate when and how much the purchase price would be but you may miss out on a significant dip if you can't control the purchase. Over the long term, would it make that much of a difference?
I think the point that I was looking at is company-sponsored SPP/DRIP programs are a super way to begin accumulating shares when you don't have a chunk of change to plunk down on a larger buy. Some people don't have money overflowing their pockets to be able to do that and the SPP/DRIP is a perfect way to begin a regular investing habit. I'm not sure there are many people contributing large sums to these plans versus using a discount broker. You have so much more control when you have the resources to make the commission irrelevant.
DRILL, so far I haven't seen a catch with Loyal3 either except you're limited to the companies you can invest in. According to their latest listing, PG wouldn't be available but PEP, KO, DIS, etc. are. I haven't signed up yet so maybe the devil's in the details but it looks pretty straightforward. Your PG example is one of the reasons you have to pick through Computershare's and the other custodians' listings.
The downside is you don't get to choose very specifically when the shares are purchased. Some plans invest on certain days/dates so you can approximate when and how much the purchase price would be but you may miss out on a significant dip if you can't control the purchase. Over the long term, would it make that much of a difference?
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan