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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: PAL who wrote (83639)12/3/1998 11:56:00 PM
From: BGR  Read Replies (1) | Respond to of 176387
 
Paul,

I would like to add draw your attention to one additional feature which most DRIPs have: optional cash payments (OCP). That way, you can have a recurring cash deposit and buy shares directly from the company - at low or 0 commission and often at a discount as high as 10% - and it is not only dividends that are used to buy shares.

For example, one can save 10 dollars (say) every month and buy 1/6th of a DELL share (assuming DELL has a DRIP with OCP and 5% discount).

DRIPs with OCPs are often seen as enabling folks with little money to invest to purchase equity with low transaction costs. Even with larger sums to invest what I personally find very attractive about DRIPs is the dollar-cost averaging (DCA) feature which forces me not to attempt to time the market but instead simply buy more at dips and less at peaks (I try to stay 140% invested all the time). DCA'ing into index funds (with leverage) has provided me with even better risk/return profiles than DELL which is no mean feat.

-Apratim.