Asked by: Rosalina Beerendtasked in category: General Last Updated: 24th January, 2020
What companies offer dividend reinvestment plans?
Below are more high-yield favorites for 2018:
- ExxonMobil , yielding 3.7%
- IBM , yielding 3.9%
- Procter & Gamble , yielding 3.0%
- Qualcomm , yielding 3.6%
Hereof, what companies have dividend reinvestment plans?
Some more well known businesses to offer reinvestment plans include Commonwealth Bank of Australia (ASX: CBA), Woolworths Limited (ASX: WOW), Magellan Global Trust (ASX: MGG), Challenger Ltd (ASX: CGF), Macquarie Group Ltd (ASX: MQG) and Dicker Data Ltd (ASX: DDR).
how do I invest in dividend reinvestment plans? Invest in a Dividend Reinvestment Plan (DRIP)
- Choose a company with a dividend reinvestment plan at Directinvesting.com.
- Avoid DRIPs that charge setup fees, administrative fees or commissions.
- DRIPs often require you to be a shareholder to participate. In that case, buy one share through a discount broker, then register the stock in your name. Advertisement.
Similarly one may ask, what benefit is available to participants in a dividend reinvestment plan?
Participating in a dividend reinvestment plan forces you to buy stock on a regular basis. If you're enrolled in a DRP, your money will automatically be reinvested. As a result, with very little effort, you'll adopt a long term horizon for your investments. Most DRIPS carry an option called optional cash purchase.
Are DRIP plans worth it?
But bottom line, reinvesting dividends through a broker or by signing up for DRIP plans directly through the dividend-paying companies, is a surprisingly powerful tool to passively improve your investment returns. So yes, DRIP plans are worth it, as long as they fit with your investing goals.