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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?


To: chester lee who wrote (4681)11/18/1998 10:41:00 PM
From: Phil(bullrider)  Read Replies (1) | Respond to of 18998
 
chester,

>>>>>>>>>>>>>>>>>>>>>

The dilution would be small, because I don't think a lot of people reinvest their divs.

>>>>>>>>>>>>>>>>>>>>>>>>>>

I read and agree with most of your posts, however, I think you are 180 degrees wrong on this one.

I believe that most people that are in DRIPs reinvest the dividends.

The reason I believe this is that most people that invest in DRIPs are "long term investors" that don't even look at, or worry about, the day to day fluctuations in the stock price. They therefore continue to contribute the same amount month after month, and reinvest the dividends because they have been told to "dollar cost average".

With most of the "Blue Chips" it is hard to argue the philosophy.

I have a few DRIPs, but don't regularly contribute to them. I do, however, let the dividends ride.

Have fun,
Phil