DRIP

RHCapital1805

The financial industry has done a great job of making clients believe a 7% rate of return is fantastic, when the actual market is making over 10%. If you have a long term investment horizon, the "pro" is too conservative. You will do much better buying SPY and starting a DRIP. You will do even better by splitting what you can afford 75% and 25% in savings. When the market drops 10%, you take the built up savings and put it into SPY

Kantmzk

99% all in + DRIP 👌 There is no other way for me.

PassiveF1st

my very large amount of SCHD appreciates it too :) Also, all that DRIP from yesterday's dividend payout is hitting.

Happy_Discussion_536

Gonna repaste older comment. Inelastic market hypothesis is 10x better explanation of what drives markets: ------------------ Trillions will flow from buybacks, divvies (DRIP), 401+company match, new savings, pension funds, endowment funds, equity-mandated funds. Until there is an actual liquidity shock. They will win a Nobel Prize at some point and these economists have figured out why markets actually go up and down. It's called Inelastic Market Hypothesis. The Inelastic Market Hypothesis is a theory proposed in 2021 by economists Xavier Gabaix and Ralph Koijen that challenges traditional views on how stock markets function. The key points of the theory are: >1 - Markets are surprisingly price-inelastic, meaning that flows in and out of the market have a significant impact on prices and risk premia. >2 - A small change in demand for stocks can lead to a much larger change in stock prices. Specifically, investing $1 in the stock market increases the market's aggregate value by about $5. >3 - This inelasticity is primarily due to institutional constraints: >* Many investment institutions have limited flexibility to adjust their portfolios in response to changing market conditions >* Most institutions maintain relatively stable equity shares due to rigid mandates >* There's a shortage of organizations that can effectively arbitrage away mispricings caused by inelastic demand >4 - The hypothesis challenges the efficient market hypothesis by suggesting that stock prices don't necessarily reflect all available information and that prices can move significantly due to non-informational factors like fund flows. >5 - Under this framework, flows become a critical market indicator. Factors affecting flows, such as stock buybacks, changes in the labor force, or demographic shifts (e.g., Baby Boomers withdrawing from retirement funds), can have outsized impacts on stock prices. >6 - The Inelastic Market Hypothesis suggests that market volatility is largely driven by trading activity rather than changes in fundamental information. >7 - This hypothesis applies not just to stock markets, but potentially to all asset classes. >The theory provides a new perspective on market dynamics and could explain phenomena like why markets can appear disconnected from economic fundamentals at times. It also highlights the importance of understanding capital flows for predicting market movements. Published 2021 - "In Search of the Origins of Financial Fluctuations: The Inelastic Market Hypothesis" https://www.nber.org/system/files/working_papers/w28967/w28967.pdf Published 2022 - "The Inelastic Market Hypothesis: A Microstructural Interpretation" https://arxiv.org/pdf/2108.00242.pdf

AICHEngineer

Use testfol.io to compare performance with and without dividend reinvestment. Some of the stocks price action is from other people reinvesting dividends, but yes if you DRIP your total return will be higher than a plain price return cause not everyone is doing DRIP.

Lopsided_Process5141

Where my dividends? DRIP at all time highs? Next week may be time for puts.

hftrobo9285

Excited to start my DRIP journey with a fractional share of VOO Monday 🌝

Historical_Low4458

PFE. I don't think it will ever go bankrupt. DRIP and let the snowball gain momentum.

Extra_Progress_7449

Fixed-Income ETFs are good but DO require cyclical management....they are not set and forget; they are also not Value-Based products, meaning the Value is not in the strike but the Distributions. Almost all the good ones are 1x Leveraged...the great ones are 2-3x but annual distributions (so Day-trader products). \---- If you want comfort without management, look into Preferred Stocks (no DRIP)....make sure you buy in less than its Face Value (FV). For instance, >$STRK is currently at a $5-6 Premium ($105.68/sh), it has a $100 FV; however, it pays $8/yr (8% \* FV) with a quarter distribution of $2; Technically you would have recovered the Premium after the 3rd quarter and it is Perpetual with no real Call Data, it has a Earliest Call Date. >$SOJD is currently at a $5+/- Discount ($19.93/sh), it has a $25 FV, pays out 1.2375 (4.95% \* FV) each year with distributions quarterly (0.309375/qtr); It has a Call Date of 1/30/2080, yes 2-0-8-0 You need to assess your own risk and ability to manage, that will identify which instruments you choose. LETFs can exceed 70% ROI in a single year; MSTY is on track to be 130-160% Yield.....Their caveat is NAV erosion if mismanaged or their strategy is too weak for the holdings IV.

safbutcho

I’m in my 50s and after years of always reinvesting - which I strongly recommend - I recently turned off my DRIP for a few reasons: 1) I have too much large cap. It was a great decade to be too large cap, but now I’m trying to diversify into other things. 2) I have access to a MBDR. I cannot max it out AND have enough take home pay to live. So I max it out and spend my monies **in my brokerage** that used to drip. 3) my 401k and MBDR contributions are now being invested in small cap. 4) In my 401k I’m buying bonds with my dividends. Always reinvest unless you have good reasons not to

iownaford

NTDOY was under $15 forever. Congrats on buying the top 🫡also my NTDOY won’t DRIP, I have to do it manually. Check on yours if that’s important.

ffffffn

Never heard of DRIP? Automatic dividend reinvestments brah

MitchCurry

No DRIP was available for fractional shares. So if you owned .678 shares of MSFT, you'd get cash and couldn't DRIP. This was my experience with ShareBuilder a decade and a half ago when I started.

Diligent_Fox_9072

How much does DRIP impact the daily market? All buys seem to be done by 11a E/8a P

zooka19

S&P 500 - Up 1.10% YTD I'm up around 18% YTD just from DCAing and DRIP lol. Woulda been more had I not dumped 1/3 into my defensive stocks, but at least I won't be panicking if we drop again.

abroadbroadband

Make sure to reinvest ☝️🤓 Many brokerages offer automatic DRIP

zooka19

I think I'll remove HIMS from my dca pie chart until I hear otherwise. Not selling, but not buying (or DRIP) either.

zooka19

I'm down 15%, won't be buying more until next month payday. I do have dividends coming in, so I'll be getting pieces, since my DRIP is set to feed into all my allocations.

UofGOOGLE

Example high yield stock: I looked at Ellington Credit Company \[symbol: EARN\] and they have \~16.7% yield at the time of this post. The share price is currently \~$5.72 and they pay a monthly $0.08 dividend, which translates to $0.96/yr dividend. Sounds really cool, right? But I looked at their stock price since August of 2023 when it was at $7.05. They were still paying the $0.08/share dividend at the time. Since August of 2023, share price has dropped $1.33, while they've paid out $1.76 in dividends \[no DRIP added\] That's whopping $0.43/share net gain in almost 2 years, which translates to an average 6% total return... in 2 years. But then you gotta pay taxes on the dividends paid, which brings that 6% return down even lower. Go back far enough and the NAV erosion is higher than dividends paid. DRIP the dividends and you may get a couple percent higher, but tell me you're happy with a yearly 3% return and you can give me your money to invest. Lmao Some of these high yield dividend stocks are not as good of a value as they appear. If you got a dividend stock that consistently recovers its share price... or even goes higher than recovered share price... your TOTAL RETURN is far better than the example stock above, which was an example stock of a bigly yield.

Live-Organization912

VOO, VTI … DRIP come back in 10 years.

Infinite_Calendar458

I second this. Open a E Trade, Ameritrade, Schwab, basically any company and start with an IRA. Put your money into high yield dividend funds and enroll in DRIP (dividend reinvestment plans) and let it grow. You don’t want to find yourself obsessing over individual stock prices all day, panicking if it drops, wondering if you should sell if it’s up. Just let it reinvest over time and grow. Bravo to you for starting at 15. You’d be utterly shocked at the number of Americans that are in their 40s and 50s and have absolutely nothing saved for retirement.

SpaceMurse

Imma load up on DRIP

beat2def

Stahp whilst you're ahead! Max out your ROTH and an HSA! Buy VOO, DRIP, and chill. I'm jealous!

Various_Couple_764

For Starters the equity market is the the stock market some stocks pay dividends and other do not. Would BANK not outperform XEQT assuming both are using DRIP? Yes it can however there are two things that result in growth dividends, and an increases in share price. Total return is dividends +share price appreciation Now for much of the stock markets history the the best way to get a good total return was to literally invest in everything. So the best investments were index funds that buy all the stocks in an index like the S&P500. it you have 500 stocks you get he average performance of 500 stocks which is about an average of 11% total return. Howeer the market has been changing slowly over time. dividend for many companies are smal which made dividend less attractive due to ther lower total return. But over time new assets have come on the market. 40 years ago there was no options trading. Business development cooperations or llon obligations. These are now available to the avers investor through ETF (exchange traded funds or Close end funds. And these trade on the stock market. And many of these fund or BDC actually pay dividends to be high enough to have a total return of competitive with index funds. Many inv esters don't realize this has happened. For example ARCC is a BDC that started doing business about 20 years ago It has a a9% dividend and not much capital gains. Since its founding it has performed slightly better than the S&P500 market IF all the market corrections (2008 market crash, Covid, and this years correction had not happened the S&P500 would likely be ahead. The only way index funds can stay ahead of ARC is by a sustained continuous Bull market. But that had not occurred in the entire history of the market. And in the last 10 years there have been a number of new covered call funds, these funds use an option known as covered calls to generate income. with these funds you can get yield o 5% or more. There are a couple near 100% dividend yield. then there is OXLC a collateral loan obligations fund that is yielding about 25% Now my personal opinion is that anything with a dividned of 20% may not last form many decades but if you restrict yourself to funds with a dividend of 15% or less you should have a dividend portfolio competitive with growth index fundsAnd since dividend funds tend to do better in bear markets verses bull market i would devote 50% of a regiment portfolio to dividends and the rest growth index funds.

elangliru

DRIP a JEPI position and forget about it for 20-years,.

IggysPop3

Oh, yeah - the CC definitely robs you of the upside delta, but I’d think if you DRIP’d it for a few years, you’d do better than 12% just because you’re buying new shares that will also be getting dividends. So, if one were to put $1 million into it (I’m strongly considering this), then in 6 years, I’m looking at $240k (ish) dividend income per year.

IggysPop3

Now I’m curious to know what would happen if I DRIP’d SPYI. This feels free-lunch-ish, but I’m not taking something into consideration here.

SirGlass

>For example: it’s better to buy VOO for 30 years, then sell it and buy SCHD to live off dividends. Compared to JUST buying (and using DRIP) on SCHD for 30 years and then live of its dividends. What is the obsession with living off dividends? If VOO gives you better return, why would you switch just because your retired? Now you may say VOO is risky and SCHD is less risky , its really not MUCH less risky. For example in the covid panic SCHD dropped 32%, VOO dropped 33% or so its really not some super safe investment. 100% SCHD is probably too risky for a retired person, so you would still want to add bonds for stability So I see no use for SCHD, when I am retired and want more stability I will just keep my 3 fund portfolio and up the allocation to bonds

CYCLE_NYC

if you have a lot in the S&P, which is super tech-heavy if you look at the weighting. I would dump a lot in Schd. start getting the DRIP going

MitchCurry

Nice timing. I did a pretty large initial buy back in Feb 2023 when it was under $10 and have added 5x since between $11 and $18.50, my latest buy being in March of this year. I'm probably done adding based on my position size now but will continue to DRIP my dividends rather than take cash.

reaper527

does XOM really have to be so green on the day my dividend is going to DRIP in? couldn't this have waited until tomorrow?

Decent_Project_3395

Nope. That is one possibility, but you are missing multiple whole classes of opportunities. Let's say I have a company that produces bananas. Everybody eats bananas. Now say that is paying a dividend of 15% a year, has no debt, and the business is stable. As long as that dividend is safe for the foreseeable future, I would buy that banana company hand over fist. I don't give a crap about growth in this case. I am going to be virtually guaranteed a 15% gain every year forever. I just need to DRIP. A guaranteed 15% gain is better than a volatile 15% gain, and maybe better than a volatile 20% gain if you need to take some gains. The clue is it is making you money. There are many ways a company can make you money. In fact, it does not have to grow at all if it makes a lot of money and pays that to you in some way. By the way, look at Apple stock for the past 5 or so years versus their revenue growth. Their revenue growth is abysmal. The stock price did very well. Leveraged buybacks. Pump the profits back into the float. Another way to pay the shareholder when growth is done.

harmless_fangs

Follow up question. Should I stop DRIP on FXAIX, and use that cash to buy SWPPX instead? Or leave drip on it is ok? Thank you.

valazendez

I'd split it in 5 and put 20K each in CALM, AMZN, O, COST, CMI. I might switch the equivalent amount in my other accounts to individual stocks and put all of this into SGOV with DRIP then do a steady withdrawal.

24bean62

Oh, see, this was the dirty dark side of DRIP investing! It sounds as if you have most of it figured out. Which part are you stuck on?

Emotional_Mud9557

I sort of agree. I am waiting until the numbers come out for the Summer. Either it will be good and stocks will go up, or it will be disappointing and I can buy cheaper. I plan on having my finger on the buy button when the big box numbers start coming out. If it is disappointing I am waiting a few weeks, if they are good and have good future expectations I will hit the buy button. I like personally like VIG which is income and growth combined with reinvestment (DRIP) turned on. After a year, I can start selling some that were purchased over a year ago and pay less in taxes due to long-term appreciation. Definitely important since it is not in an IRA. This is not investment advice and I am not a licensed broker.

srvn007

Nice one! I’ve been holding since 2022 and have already collected more in dividends than my original cost. also doubled my position through DRIP but not adding any more

wiltznucs

I’ve got a pretty simply strategy; I think of it as a slightly modified Boglehead. I’m 15 years from retirement and I still see value in dividends. It’s nice to see money coming in even in the lean/bear years. Bonds are too volatile for me. So I invest in MO instead. It’s not without volatility; but, it’s hard to argue with a company that pays out 7-8% and consistently raises its yield. I’ve been doing DRIP with MO for some time and have watched it steadily grow. So I try to do 60% VOO and 20% VT with the remainder in MO. Every now and again; I outperform the market too. Ignore the noise; keep throwing money in.

boldequity

I used to think dividends were extra money from the stock myself, but I recently learned that’s not really the case.  When a dividend is paid, the stock price typically drops by that same amount - so it’s not free money, just a different way of getting part of your investment back.  If you reinvest the dividends (DRIP), it’s basically the same as if the stock didn’t pay a dividend at all. What really matters long-term is the total return (growth + dividends), not just the payout.

Tojuro

The problem with high dividend stocks is that the dividend you get is subtracted from the value of the stock and then you pay taxes on it annually. You can DRIP (dividend reinvest.... But more stock), but you would still be better off getting the gains from an increase in stock value over time, where you aren't being taxed twice. One exception her would be if you invest using a Roth IRA, since you don't pay taxes on gains there. My Roth IRA money is the one place I put money into high yield dividend stocks (VYM in particular) in a big way.

Rogue_Frame83

Purchase 2500 MSTY. Drip all monthly dividends. 12 months make back ~94%, Perhaps keep DRIP on for another 4-6 months, basically build your monthly dividend to make massive pmts to pay off loan. This is if we use an avg monthly dividend with June 2025 as the example - $1.47 per share paid per month. After loan repaid, you’ve built a vehicle that will earn $10’s of thousands in monthly dividends.

woome

Fact of the matter is you really don't have enough to do anything substantial. However, if you change your mindset a little, there's a lot you can learn. Don't think about wealth, or getting rich. Back when I didn't have much, I experimented with whatever extra I had. Try out what different portfolios look like: DRIP, 60/40, index funds, riskier stuff, as long as you have a safety net. Over the years, I collected a bunch of metrics and tickers on spreadsheets. I got a feel of the type of investing I was comfortable with. Since you don't really have enough to lose, and as long as you go about it responsibly, I'd suggest exploring a little.

Acceptable_Main_5911

This is what I what do. That would be 2380 shares. Would yield anywhere from $3000 to $4500 next month and DRIP into another ~50 shares and an even larger next month and beyond.

Other_Background3416

I am considering putting a chunk into a high yielding dividend stock for 1 year, and want to experiment with keeping half of the monthly distributions and DRIP the remainder. By the end of 1 year, I want to be able to evaluate how the fund has performed but there doesn’t appear to be an easy way to separate ‘growth’ from ‘distributions’. would the most accurate/fastest way be for me to manually go into the past year distributions and add them up, then subtract that amount from the total value of the stock? and that doesn’t seem to consider the compounding effect from the DRIP

TheSavageDonut

He should max out his Roth IRA and put it all into VUG. He should take remaining money in brokerage account and put it all into SCHD -- turn DRIP on.

Googgodno

>How much would that be worth today? Three million dollars. Excluding the dividends or DRIP. His $1000 worth of stocks would have split multiple times to the present value of 14286 shares.

ManyCommunications

WHY THE FUCK DOES MY DICK STILL DRIP HELLA PEE AFTER I SHAKE IT WITH THE FORCE OF 100gs 

IveLurkedWSB2long

No problem. Set DRIP up and forget about it. That's the hardest part. If you want to keep gambling, use new money. Your money will compound hard. Don't touch that shit.

IveLurkedWSB2long

You could lose it all just as quick. Put it all in $VOO and keep living your life. It will be an insane head start and if you don't touch it by the time you're 35 you will have a shit ton of money. Set up a DRIP and reroll all the dividends to reinvest. I hit 100k on gamestore in 2021 and lost most of it listening to these regards. I wish I did what I told you to do instead.

MrCoolGuy42

Damn!! According to Google it’s estimated to be $2.37. This is my first month holding it, I only have 150 but doing DCA and DRIP. What’s your cost basis?

pigglesthepup

Tax-advantaged retirement accounts are insurance policies that you don't have to work until you die. Contributions to these accounts are capped. The only way to contribute additional money to these accounts is to work more tax years into old age. Losses in taxable accounts can be harvested for a tax break. Look up "capital loss deduction." Losses in tax-advantaged accounts receive no tax breaks. They are total losses. The early one starts contributing to a retirement account, the less aggressive they need to be with the investments. A 20-something doesn't need to do much more than put their tax-advantaged contributions into a global total market stock fund. Barring a few exceptions, those contributions won't be accessible to them for 30-40 years. Over that amount of time, the winners will rotate. The top 10 of the SP500 looks very different than it did 20 years ago. Tech was also underwater for over a decade after the Dot Com bust. A capitalization-weighted total market fund takes care of all that shifting around. All you would need to do is set the dividends to DRIP and buy more of the index with each contribution. Imagine buying QQQ in 2000 in an IRA. You'd have watched it lose most of its value and then underperform the market for a decade. If you sold, your losses couldn't be deducted from your taxes. They would be total losses.

ChowdeeUltra

Sure but why would you not want to be semi retired at 40 with div income or a DRIP strategy to get even more compounding out of the whole deal. I’m not saying go all in on JUST div yield but it’s certainly something to consider with this much of a runway lol.

Fujiyama_1043

Hi, reposting because the daily discussion for yesterday that I posted in isn’t on here anymore. I’m a 24F that just opened a ROTH IRA in Fidelity. I am relatively new to investing and would like to get some advice on how to build my portfolio. Some things about me: -The company I work at doesn’t sponsor a 401k or HSA, they have Calsavers but opted out, I decided to open Fidelity ROTH IRA on my own instead. -I have $0 debt. -By the end of this year I will have $30,000 in my HYSA (APY 4.00%), which seems like too much but I need accessible cash in case of a emergency (working at a startup, aging parents) -I will be able to invest $7000 as a lump sum anytime this year(2025). -As for risk tolerance, I am fine being moderately aggressive to aggressive if that is a better option, since I am still young. However, I would like to invest mainly in index funds that pay a dividend(I will use DRIP to reinvest) -Starting next 2026, I would like to max out my Roth Ira immediately in January every year. After this, I want to open up my TBA and invest biweekly($500-$1000, depending on my finances). How should I build my Roth IRA? For the TBA I’m opening next year, should I invest in the same things?

ra__account

High dividend and growth are generally polar opposites. https://schrts.co/rdEbwdmj That chart includes DRIP at a 0% tax rate. In almost all cases, you'd have been better focusing on the general market than dividends. So why are you interested in dividends?

Fujiyama_1043

Hi, I’m a 24F in the USA that just opened a ROTH IRA in Fidelity. I am relatively new to investing and would like to get some advice on how to build my portfolio. Some things about me: -The company I work at doesn’t sponsor a 401k or HSA, they have Calsavers but opted out, I decided to open Fidelity ROTH IRA on my own instead. -I have $0 debt. -By the end of this year I will have $30,000 in my HYSA (APY 4.00%), which seems like too much but I need accessible cash in case of a emergency (working at a startup, aging parents) -I will be able to invest $7000 as a lump sum anytime this year(2025). -As for risk tolerance, I am fine being moderately aggressive to aggressive if that is a better option, since I am still young. However, I would like to invest mainly in index funds that pay a dividend(I will use DRIP to reinvest) -Starting next 2026, I would like to max out my Roth Ira immediately in January every year. After this, I want to open up my TBA and invest biweekly($500-$1000, depending on my finances). How should I build my Roth IRA? For the TBA I’m opening next year, should I invest in the same things?

Here4Snow

No one logs into their Roth portal to transfer funds to their bank, because that's a distribution. You don't need to move the settlement funds to reinvest. You can set that to DRIP or just make purchases when you have a build up of available funds. But... Are you familiar with REIT? They sometimes need cash infusions. And they can be hard to divest. I would never hold a REIT in an IRA.

quesofamilia

If you don't plan on spending the money, you can open a Roth 401(k) and dump that money into a dividend stock like JEPQ using DRIP or buy something that follows the SP500 like SPY or VOO. You can also do QQQ which follows tech. Personally, I would buy JEPQ as reinvest the dividends tax free for 10+ years. I would just keep it growing until you need it. That could easily become $500k+ over a 20 year period and provide you with a healthy dividend.

Father_of_Lies666

You’ll always be at the whim of the markets. HYSAs don’t generally beat inflation, if even matching it in recent years. I don’t mean to sound gloomy, but this situation will get worse before it gets better. I’m in individual stocks, hedging with options (or really, downright playing in long dated options). This is an… interesting time to learn this. I would park it somewhere predictable, learn, and wait. Then again, I’m more of a trader. I get the allure of DCA forever. Buuuuuuuuut lost decades happen. My LT “boring fund” is sitting in RCS (strategic income fund, DRIP method, short dated US bonds), KO, ADM, and a few ETFs across some historically cheap sectors (energy comes to mind, as does consumer discretionary, though they are volatile). 30, contribute about the same you do to it. Exited SPY in Feb, haven’t looked back.

923kjd

That .0002 though. Solid return on the DRIP, my man.

CaptSwayze

I’ve been investing for 15 years. I know what DRIP is. I use it. But once you’ve been investing for a while you’ll see how chasing high yields are usually going to have you underperforming the market. Even reinvesting the dividends. Most high yielding stocks/etfs, are going to be low dividend growth rate or none at all.

Such_Region2724

RIP to the DRIP shares I bought today 

n0bodyneeds2know

Check out a dividend DRIP calculator for SCHD

NorthmanIP

I'm currently considering buying MAIN here today or tomorrow and setting up a DRIP, have you had any experience with that or have you just enjoyed the dividend payouts

Torshein

Why would coke rise post split? If you just need short term income MSTY is hard to beat imo. I'm up 30% since 4/11 with DRIP. 17% without DRIP.

NorthmanIP

I just thought that since I'm gonna be reinvesting it most likely anyway, and the pennies I'd get in dividends arent really that interesting (haha) a DRIP might just be the easiest solution. I'm wanting to join either MAIN or O in a long-term investment plan.

greytoc

Ahh - interesting. Just be aware that the dividends are taxable events regardless of a DRIP for a non-resident alien. The tax would depend on the tax treaty between the US and your tax residency country.

NorthmanIP

I'm not in the US, I'm from the Nordic and not all of our brokers support DRIP for all stocks.

greytoc

MAIN supports a DRIP - [https://www.mainstcapital.com/investors/listed-securities-information/dividend-reinvestment-and-direct-stock-purchase-plan](https://www.mainstcapital.com/investors/listed-securities-information/dividend-reinvestment-and-direct-stock-purchase-plan) Why does having a DRIP matter to you? It shouldn't really be a reason to make an investing decision since pretty much all brokers in the US today support dividend reinvestment if the issuer does not support a DRIP.

NorthmanIP

Do you know if Main qualifies for DRIP then? Cause I've been thinking about investing heavy in Main and then setting it up as DRIP instead of taking dividends.

HeadSavings1410

Maybe soon...but my reits recovered from that drop, allowed a better average when they DRIP'd... probably exit soon tho

ProductCold259

Well maybe. Idk. I don’t think it’s luck since I’m the one who chose not to sell. Lucky would be if I did sell, got back in at the right time, and managed to recover what the market lost or even make gains on some stocks going back up. But nah I just stayed the course. I had DRIP on my Divs so this whole time they’ve been buying back in at those low prices. Also, sorry about this and your dad man. The comments section bummed me out somewhat. Folks put their emotions before their reason.

TheWifeysBoyfriend

Futures would be a way better vehicle for swing trading that. Use a regular etf for long term. With DRIP give it 5 years and what you have in there today will be 99% gone.

TheWifeysBoyfriend

ICE may have peaked, but I’m not writing it off. Oil still has plenty of life left, and a lot is going to shift before ICE vehicles disappear. I’m selling puts on a couple energy names with strong cash flow and global exposure, either collecting premium or getting shares at levels I’m comfortable holding. Energy companies will adapt over time. DRIP will not. It will decay with volatility and compounding moves 2x, and holding it long term is a losing game even if you are right on direction. The prospectus cautions you not too. If you time a move on oil like when the futures went negative in 2020 - and lock in your profits - then hats off to you. But we'd have to see some major negative catalyst like all global business shutting down again for that.

pintord

DRIP

LongevitySpinach

I'm short oil via DRIP. (inverse producers) Very slowly building a larger position by averaging down every time it dips and averaging out every time it rips. I'm long term very bearish on oil due to having passed peak ICE engine sales 5 years ago, and EV market share passing 20% globally. Global recession won't help.

CardinalNumber

DRIP and a falling share price.

PayMyDividend

It really depends. It’s a matter or preference and risk tolerance. And overall strategy. There’s no right answer. More diverse can be ‘safer’ but having a highly concentrated portfolio can have outsized returns. But you better make sure they’re winners. Losers can really pulverize you. I personally have I think 70ish holdings. The majority of those are my long term (basically forever) holdings of dividend kings and aristocrats. I want that layer of dividend compounders to hold super long term. No selling. I’ll only sell if they fail to raise the dividend or go on some insane clown market-like rally for some reason. Which is unlikely for companies like that anyway. Basically positioning myself to have a strong dividend runway for the future to build on today and continue to DRIP and DCA across them equally. I could’ve bought the NOBL ETF. But I refuse to pay the expense on it. Otherwise my holdings would be much smaller. On the other hand, I have typical ETF’s just a small handful. VOO, VGT, SCHD, SCHG. SCHD is my biggest overall holding by equity. (Goes hand-in-hand with the previous setup.) The rest are still sizable, and give overall diversity and more aggressive positions. Lastly, about 30% or my portfolio or so goes to my personal conviction picks. Some I intend to hold a long time. Some I may hold for a while and trim away if they flop or do good enough and I want to sell. These are usually fairly aggressive. I don’t often select these kinds of picks often. I need to absorb as much DD and news as I can. If I determine it’s a great deal, I’ll pull the trigger. But that’s just me. I actively invest. I watch financial news like a hawk. My portfolio is basically my baby. It’s practically a job and a hobby for me. This system works well for my own goals and the overall returns have been quite good. I can withstand downturns better, but may lag a tad in raging bull markets sometimes.

MAGA-KING-2024

BUY. THE. DRIP. 

marlwenplotsky

$GUSH and $DRIP were the 3x bull and bear shares last time i got in the mix with them. havent traded them in years tho

MAGA-KING-2024

BUY. THE. DRIP. 

itsthedollarB

High risk high reward I dig it fellow regard, Just do me a favor and don't DRIP this, get your money thru divs ASAP so that it's atleast all house money in there after a year or so (hopefully) Wish you luck bro, as a fellow regard and a man of risk I would be doing this same thing lmao

zooka19

Yeah it's only gonna be a small portion, and my DRIP will feed into it, kinda grabbing pieces here n there

Middle-Kind

Pay off anything you're paying over 5% interest on is what I would do. Then take some of your cash and put it in something that pays a good dividend yet grows with the market like SCHD. I suggest doing it out of a IRA account and enable DRIP so it continues to grow even faster. I would just spread it out and keep cash handy in case of a complete market crash.

Humaniac99

WHY THE FUCK DID $wolf NOT DRIP THE A FUCKING ROCK. THEY ARE IN SO MUCH FUCKING DEBT. WHAT RETARDS ARE SCHILLING THIS CRAP AND MORE SO WHY ARE THEY STILL HOLDING. WHAT THE FUCK THEIR EARNINGS WERE SO SHIT. FUCK SHIT PISS ASS DICKFACE CUNT FUCKER BITCH. FUCK!!! REEEEEEEE 

Itchy-Cat-8466

All depends on your goals ! I would look to strong ETF possibly dividends and turn on DRIP if you’re in it for the long haul. Don’t go all in at once ! Start small, can scale more in on pullbacks

stewliciou5

What is considered high yield nowadays? 3 or 4%? Not financial advice, but I would put it into a dividend portfolio with stocks with a looking consistent history of 6 or 7% dividens and enroll them in the DRIP program to snowball the dividends. Basically acting like compound interest.

OGsuperbear

Lindt & Spruengli AG with DRIP because I love chocolate companies.

Kratos113

What would you suggest to take advantage of compound interest if not VOO? I'm currently doing DRIP and the dividends are being reinvested. Just looking for a way to maximize the 15 year long term contribution

GamblingMan420

Compounding does not apply to stocks/index funds like it does with bonds/HYSA. There is no “interest” rate of them. The dividend’s will compound if you have automatic reinvestment turned on, also known as “DRIP.” The 5% annual return estimate will be for example, 1st year of a $100k investment yields $105k. 2nd year is 5% of $105k, so EOY return is $110,250, 3rd year $115,762.50 and so on.

WanderersGuide

As a Canadian, all dividends that I collect are tax free or tax advantaged vs. Capital gains. Having said that, the two biggest performers in my portfolio and the largest holdings I have are EIT-UN.TO and VFV.TO, the former an income focused fund and the latter an index fund that tracks the S&P 500. VFV has had stronger capital gains, but with DRIP they've performed about equally for me in the time that I've owned them. Currently, VFV is lagging, but the S&P 500 has been disproportionately punished in the current political climate.  I hold VFV in a tax advantaged retirement savings account, and I hold EIT-UN in my cash accounts where the payments are treated as eligible dividends at tax time. Keep in mind these are both stocks traded in Canadian dollars on the TSX. All that said, my value proposition is likely not the same as yours.

zooka19

Good Lord, I remember being invested in AEHR. Now my riskiest stock is SOFI. Slightly red, but I'm not adding any more to it via DCA or Pie DRIP.

Acesonnall

Component How we got there Dollar value (today, 3 May 2025) Current Boeing shares 10 McDonnell Douglas (MDC) × 1.3 BA per merger agreement 13 shares Market price BA last trade ‑ $185.46 ≈ $2,411 Cash dividends you’d have pocketed (1997‑Q1 2020) Σ annual dividends per BA share 1997‑2020 = $52.71 × 13 shares ≈ $685 TOTAL cash you could have today (no reinvestment, pre‑tax) — ≈ $3,096 If you’d re‑invested every dividend through the DRIP you’d own ~16 BA shares (rough calc using ex‑div closing prices), pushing the market piece to ~$2,970 and the all‑in total toward $3.6 k; still the same order of magnitude. How I got there Merger math Final exchange ratio was 1.3 Boeing (ticker BA) for every 1 MDC share; it was 0.65 until Boeing’s 2‑for‑1 split in May 1997 doubled it. So your 10‑share certificate became 13 BA shares. No further splits on BA after 1997. Market value Latest BA quote is $185.46. 13 × 185.46 ≈ $2,410.98. Dividend stream (if you took the cheques) Boeing paid steadily until COVID shut it off in 2020. Summing annual dividends 1997‑2020 gives $52.71 per share. $52.71 × 13 ≈ $685. (If you missed a few cheques, adjust accordingly.) What if you’d DRIP‑ed? Reinvesting quarterly bumps your share count 25 % (rule‑of‑thumb using actual ex‑div closes). That’s why the fully‑compounded total ($3.6 k) isn’t life‑changing either. Don’t let anyone sell you on “hidden fortune” fantasies. Collectible (‘scripophily’) value Ordinary post‑1970 McDonnell Douglas certificates trade $10‑$40; pristine “specimens” can hit $300+. Your 1995 issue with punches/ink is toward the low end. Nice wall art, but financial value = share value unless a collector overpays. Cashing in / putting it in street name Issuer & transfer agent: Boeing’s agent is Computershare Investor Services. Call them (888‑777‑0923) or open an Investor Center account. They’ll walk you through registering the old certificate, medallion‑signature‑guarantee, replacing lost coupons if any, and depositing to a brokerage. Expect a $25–$50 fee for replacement or DRS transfer; negligible relative to the $2.4 k stake. Tax angle If this was inherited, your basis may be date‑of‑death FMV. If it’s yours since 1995, original basis carries into BA (basis is split 50/50 between the 1.3 shares received & cash‑in‑lieu for any fractional share you may have had). Dividends already taxed in the year received; if you never reported them, you'll want to look into what's needed. All in all... You’re not sitting on a secret gold mine—roughly three grand gross, maybe enough for a weekend trip or a chunk off a credit‑card bill. Unless you love the nostalgia, dematerialise the paper: theft, fire, or simply losing it would be a 100 % loss. If you want to stay invested, move the shares into a brokerage via DRS; if not, instruct Computershare or your broker to sell and wire the proceeds. And if you think aerospace has long‑term upside, remember BA hasn’t reinstated its dividend yet and is still digging out of 737 MAX/legal holes. Keep your eyes open. TL;DR – About $2.4 k in stock, $0.7 k in past dividends; call Computershare, get it registered, decide whether to hold or sell, and don’t expect yacht money.

RJ5R

After dot-com crash and after I landed my first job The guy in the cube next to me said to shovel every penny into the S&P 500. I thought he was crazy after the dot-com crash. He said just do it, and you will retire a multi millionaire. So that's what I did, I went with the S&P 500 index in my 401K, went with the S&P 500 in my Roth, and then later in the 2000's when the HSA went mainstream I went 100% S&P in that too. I just stuck with it out of laziness. Even during the throws of the '08 and '09 crisis, I continued just doing 100% S&P 500. Fast forward to today. Let's just say that I am sleeping like a baby. I tried stock investing....dabbled here and there, won some. Lost some. Won some more, lost a lot, won more, etc. Got boring and I didn't like how I didn't have any control. So starting in 2010-2012, I began investing in real estate. Had full control of that, and leveraging the debt seemed like a no-brainer. Also learned how to be handle. So that's what I did. I still own a handful of winner stocks that have paid off very well long term, mostly large cap....microsoft, walmart, travelers, etc. they are just on auto DRIP forever I guess. But my main "stash" is in good old boring index funds, and almost $10M of real estate now

zooka19

SOFI opinions? I've gone neutral so I'm gonna hold. Not gonna dca and took it out of my pie for DRIP.

pintord

DRIP to the moon!

Haunting_Ad_6021

DRIP or dividend reinvestment

stickman07738

I have investing HON since the late 1990's via their DRIP - initially $100/month then switched to $500/quarter added extra from my bonuses and sold previous spin-offs (ASIX, REZI, GTX) and rebrought parent. By far my largest individual holding. Only sold once (100 shares) during Covid to remodel the kitchen. Probably not touch anymore but give to heirs to get stepped-up cost basis.

L_DUB_U

If you aren't close to retirements, just keep buying. Right now your account value may be dropping but as you continue to buy shares and continue to DRIP, you will just accumulate more shares that will be more valuable in 20, 30, 40 years.

AndyMcDandy00

You’re not an investor. You’re a gambler. At least you can write off these gambling losses. Sell what’s left, move to SP500, leave it alone with DRIP and come back in 20 years.

Babinio

Look into $MSTY instead brother! You do weekly investments and reinvest your dividends with DRIP and watch your money grow faster than you’ve seen before 🫡