Making lot’s of money, Uh-Huuuuuhhhh. (sing it with me) Here’s the melody… Dividends, uh yeah… What are they good for? Making lot’s of money! Say it again!
Ok. Enough singing….
I’ve been doing a lot of posts about investing lately, including how not to invest and how to slowly but surely build up a million-dollar nest egg. Well, obviously my life is not as exciting as it used to be because my Saturday evening is consisting of checking out personal finance blogs and getting ready to go grocery shopping while my wife gives the kids their “tubbies…” I know… yeerrrrr jealoussss….
Anyhow, in case any of you are “as cool as me” this Saturday night or are waking up on Super Bowl Sunday and just jonesing for some added ammo on “investing the right way,” check out my friend Barb Friedberg’s post walking you through investing with dividends and why reinvesting dividends is a great way to build up some good dough. I couldn’y have said it better myself… even if I used my “sexy voice.“ So check it out!
I have all my accounts set up to auto-reinvest dividends with one exception. I always own 10-25 shares of Disney stock directly with the company to use as gifts to kids in our extended family. (In order to get those “pretty” stock certificates I need to have Disney hold the shares and then they’ll issue certificates for free. Apparently I didn’t have a dividend reinvestment program active with them because I just got a $6.00 dividend check in the mail. I’ll have to activate it, assuming it’s available – I’m sure it is.)
In case you’re wondering, setting up to automatically reinvest dividends is usually pretty easy. I have most of my investments in TD Ameritrade accounts. I literally just sent a message on the “contact us” page saying “please enroll all eligible holdings in your DRIP plan.” (DRIP stands for Dividend Re-Investment Plan). Feel free to use “drip” if you want to sound cool geeky… They wrote back about 3 hours later saying “all set.”
Anyhow, get reading and then go have some fun tonight! I’ll be partying vicariously through you.
Until next time, put your credit card down and slowly step away from the mall!
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{ 2 comments… read them below or add one }
I'm as cool as you Nick. Spent last night doing the "tubby" thing with my daughter and up now Superbowl Sunday morning cruising my favorite personal finance blogs and watching Toy Story 3 (I'm a multi-tasker). Love those dividends although I wish they would be larger. I'm not sure if you can invest in the stocks of Thai companies from a U.S. based account, but some of them have wonderfully high dividends (6-9% range). Other than Disney what dividend bearing stocks do you own? For the record I love Disney and also love Proctor & Gamble (PG). The company has raised distributions for 55 years in a row and the ten year dividend growth rate is 10.90% per annum!
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Ha! Nice. That's pretty awesome about the Thai stocks. Lately I've been phasing into more index fund investments (most of them pay dividends in the 2% range, which is not very exciting but I'll take it over nothing). I've owned MO for a while although I'm torn about owning tobacco stocks, but the stock has been good to me, so I've held on for a while. I also have a little $$ in KO and NLY, a REIT. Other than that it's a half dozen index funds and AAPL, which doesn't pay a dividend… yet.
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