04-14-2015, 04:25 PM
(02-11-2015, 12:39 PM)Dividend Watcher Wrote: I like DRIPping since it adds to your holdings without incurring fees. When the account gets larger, you can selectively save the dividends in cash for the next investment if you prefer but the compounding of dividends can really help the growth of your investment.
I'd suggest you start building up a core of 5 -10 great companies that will be the foundation of your portfolio for the long term. Then you can branch out from there. Try to get them when fairly or undervalued. You can find ideas on valuing them here and on Seeking Alpha.
Great advice for the beginner, someone who has limited funds or can only invest small amounts periodically. Started DRIP's for the grandkids in 2008 and they've seen their dividends grow from $35 per Qtr to $155 per Qtr. We have not added a lot of money but with dividend reinvestment and compounding their dividends are growing steadily as has the capital and number of shares. If they begin to contribute later I'm sure they will accumulate a considerable sum in their future.