Dividend Reinvestment
Stock Dividend Reinvestment Plans: More Trouble than They Are Worth
Stock dividend reinvestment plans create a string of hassles. On the surface they sound great. But once the entire picture comes into focus this is not the case. Companies offer stock dividend reinvestment plans (or DRIPs) because they encourage long-term investment behavior. This provides support for their stock price. It may also be an avenue …
Interpreting Morningstar’s “Growth of 10K” Graphs
When I had less experience Morningstar’s “Growth of 10K” charts impressed me. They made mutual fund investing appear to be a lucrative and easy strategy. Mutual funds are certainly useful. But the “Growth of 10K” chart should not be the sole basis for decision-making. Morningstar (morningstar.com) is a fantastic source of free data for investors. I …