This week Jeff Fleming reviews dividend reinvesment plans and the basic principles of financial planning. The shareholder can even buy fractional shares, which avoids the necessity of having to accumulate enough money to purchase a whole number of shares at once. This means that your money gets to work for you right away. Yes, I want to be secure in the future. No, I haven't had time.
DRIPs create a win-win situation.
The company benefits from the additional working capital it receives from long-term investors. The investors benefit from reduced costs and the opportunity to purchase shares of large companies on a systematic basis and without waiting until they have a lump sum of cash to invest. For a more detailed discussion of DRIPs, visit DRIP Central , a complete online guide to investing. Peruse past editions . More about Jeff Fleming Please read our disclaimer .