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  1. #1
    True blue Filipino snop's Avatar
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    Post DRIP (Dividend Reinvestment Plans)

    You want to know about Dividend Re-Investments - DRIPs?
    Join me!

    SNOP
    Juan de la Cruz from Paranaque

  2. #2
    True blue Filipino snop's Avatar
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    NEW YORK (CNNfn) - Want to make your broker mad? Want to buy stocks without paying a commission? Want to make money in your spare time? Consider dividend reinvestment plans.
    These plans, known somewhat unenticingly as DRIPs, allow you to buy your stock straight from the company as long as you own one share already.
    More than 1,000 companies offer dividend reinvestment plans and the numbers keep growing. These companies include some of the top businesses around, including such Dow industrial stocks as IBM (IBM), Chevron (CHV) and McDonald's (MCD).
    Additionally, more and more overseas firms which trade as American Depositary Receipts in the United States are also offering DRIPs, including British Telecom, France's Elf Aquitaine and Japan's Sony.
    All dividend reinvestment plans start with owning one share (although a small few require more, such as Hewlett-Packard (HWP) which has a 10 share minimum).
    There are various ways to get that first share. You can go to your broker, but if you do, make sure they register the share in your name, said Charles Carlson, editor of DRIP Investor.
    Your broker will try to talk you out of this since some brokerages prefer to keep the share registered under their street names. "Be prepared to withstand 48 reasons why it's a bad idea," said Carlson.
    Under street name ownership, the shares are held by the broker and maintained in an account for the investor.
    Fortunately for you, there are ways to bypass the broker completely, even when buying your first share. Increasingly, many firms are offering direct stock purchase plans (DSPs) which can save you hundreds of dollars in broker fees.
    For example, if you want to buy 200 shares of a company at $25 per share, broker fees could run anywhere from $75 to $150 but if you buy the stock directly from the company, it may cost you only a nominal fee of $15 or so to cover the processing costs.
    So far, only about 400 companies offer this, including such notables as Procter & Gamble (PG) and Exxon (XON). But David Venghaus, executive director of the Society for Direct Investing, expects this trend to keep growing.
    "There is research that shows shareholders tend to be more loyal customers of their products," said Venghaus.
    Additionally, individual investors -- the kind who participate in DRIPs -- tend to be the buy and hold investors eagerly sought by companies who hate to see widespread defections after a poor earnings report, he said.

    Start DRIPing

    Once you're a shareholder of record, you'll have to enroll. Contact the company's shareholder relations department for a DRIP application and prospectus, which will give you all the information you need about the plan.
    Dividend reinvestment plans have two advantages. First, as the name would apply, once you have one or more shares, the dividends you earn are then applied by the company toward the purchase of more shares.
    However, once you're in, you can also send money into the company to buy more shares. "This is where the real oomph comes in," said Carlson, who explained these optional cash payments can often be as little as $10-$25.

  3. #3
    True blue Filipino snop's Avatar
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    Post

    Trading via the Pony Express

    Investors accustomed to speed-of-light trading practices might be frustrated by DRIPs, which operate more like the Pony Express.
    "When you call your broker and tell him to buy IBM, he goes out and buys it immediately," said Venghaus. "When you buy directly from IBM, you send in a check, fill out a form and it takes a couple of days."
    This can affect the amount you purchase. In those days between when you want to buy or sell more stock, the share price might fluctuate. So, your $100 may buy you more or less stock than you bargained for.
    You can't even be sure the company will process your sell or buy request as soon as they receive it. Many companies process these orders every other day or even every other week, waiting until an amount of orders accumulate so they can take care of several at once.
    Carlson noted if you expect to sell some shares at a certain date, you can write the company ahead of time and request them to send you the actual stock certificates. Once you have those in hand, you can walk into any brokerage and sell them at the exact time you want.
    DRIPs will also require you to be a much more diligent and organized investor than you may be now.
    Carlson, for example, participates in 17 different DRIPs and gets 17 different statements. When you buy stocks through your brokerage, they send you a consolidated statement with your entire portfolio on one form.
    Your bookkeeping habits will become especially crucial around tax time. Dividends, even if they're reinvested, are considered taxable income. Each year, your DRIP companies will send you a 1099 form with this information.
    Dividend reinvestment plans have proved so popular that even brokerages are trying to get in on the act, but don't be fooled by imitations.
    Some brokerages have taken to offering DRIPs of their own. They'll say they won't charge you a fee to reinvest dividends to buy more shares of that company's stock.
    However, if you want to buy additional shares out of your own pocket, you'll have to pay a commission, taking away the main advantage of a traditional DRIP. In the end, it's better to make the additional effort and participate in these programs on your own.
    -- by staff writer Randall J. Schultz

  4. #4
    True blue Filipino snop's Avatar
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    Post FAQ

    <<Frequently Asked Questions

    Q Iím new to the DRIP world. Whatís the difference between what you call No-Load Stocksô and dividend reinvestment plans?

    A An easy way to answer your question is by saying that all No-Load Stockô plans are DRIPs, but not all DRIPs are no-load stocks.

    More than 1,100 companies offer dividend reinvestment plans. These plans allow investors to buy shares directly from companies. Shares are purchased with dividends that the company reinvests for participants. In addition, most DRIPs permit optional cash investments that participants send directly to companies to purchase additional shares. The one catch is that in most DRIPs, an investor already must be a shareholder of record of the company in order to participate in the plan.

    No-load stocks differ from other DRIPs in that no-load stock plans permit investors to make their initial purchase of stock directly from the company. No-load stock plans come in two varieties ó plans that are open to all investors and "limited" no-load stock plans that are available only to certain investors, usually customers of the corporation or residents in the state or states in which the company operates. Thus, the main distinction between a simple DRIP and a no-load stock plan is that the former requires you to already be a shareholder in order to participate; the latter permits investors to make their initial purchase directly from the company.

    Another distinction is that certain ancillary services, such as IRA options, automatic investment services, weekly and even daily stock purchases, and telephone redemptions, are available much more frequently in no-load stock plans than in basic dividend reinvestment plans.

    The number of no-load stock plans now stands at more than 600, thatís up from 52 at the end of 1994.

    TOP

    * * * *

    Q I currently have a large investment with a brokerage firm, and I am very dissatisfied. I want to change to DRIPs, but I donít know what to do. Can you help?

    A In order to transfer your brokerage stock to DRIPs, you need to understand the following:

    ē Not all companies offer DRIPs. Make sure your stocks have company-sponsored DRIPs. You can check by calling the firmís shareholder services department.

    ē In order to enroll in company-sponsored DRIPs, you must have the stock registered in your own name. If you have an account at a brokerage firm, and the broker is holding the stock certificates, you now have the shares registered in "street" name. In order to be eligible to join DRIPs, you must tell your broker to re-register the shares in your name. The broker will tell you thatís a bad idea ó brokers like to hold shares in street name since it gives them control of the asset ó but you need to have the stock registered in your name in order to join DRIPs. Unfortunately, your broker will probably charge you a fee to re-register the shares.

    ē Once the stock is registered in your name, youíll receive the stock certificates in your mailbox. Most DRIPs offer safekeeping services. When you join the DRIP, youíll probably be able to send the stock certificates to the company if you donít want to hold them.

    TOP

    * * * *

    Q I am considering DRIPs as an investment, but Iím worried about always having to add money. How often do I have to add more shares to the plan? Can I add a few shares and stop for a few months before adding more?

    A I receive this question a lot, especially from newcomers to DRIPs. One of the beauties of DRIPs is that the plans are incredibly flexible. Most plans allow investors to purchase additional shares monthly or weekly. However, these "optional cash investments" are just that ó optional. You are under no obligation to make monthly or weekly purchases. To be sure, some DRIPs may require the ownership of, say, five or 10 shares to remain in the plan. However, you are under no obligation to buy stock on a regular basis in these plans. Of course, the power of dividend reinvestment plans is the ability to make regular investments with relatively little money. Still, you are under no obligation to do so. One exception is if you decide to sign up for automatic investment services in a dividend reinvestment plan. Many DRIPs allow investors to make regular investments via automatic debit of a bank account. In these instances, investors are obligated to invest on a monthly basis. However, if you join an automatic investment service and decide, over time, you do not want to maintain regular investments, you can bow out of the service providing youíve met the minimum investment required by the DRIP.

    TOP

    * * * *

    Q If I invest $10 or $50 per month in a companyís dividend reinvestment plan, what do I get for my money? Does the company hold my money until I can buy a full share of stock?

    A The beauty of dividend reinvestment plans is that your money buys both full and fractional shares. If you invest $10 in a stock that trades for $50 per share, the DRIP will buy you 0.20 share of stock. Your money is invested in the stock, not held until you have enough to buy a full share. Thus, all of your money is working for you right away in dividend reinvestment plans.

    TOP

    * * * *

    Q Iím a novice investor with about $1,000 to invest. Am I better off opening an account with a brokerage firm or should I invest in DRIPs?

    A I think you are probably better off buying a few DRIPs directly. You could follow the portfolio suggestions I laid out in the previous response to the individual who had $50,000. A few additional suggestions for a portfolio are Walgreen (800-286-9178), the drugstore chain, and Equifax (888-887-2971). Both allow initial investments directly.

    One reason I prefer DRIPs to a brokerage account for newcomers is that money at a broker, especially an online broker, may tempt you to trade too often. And if you trade even just once a week, youíll see your $1,000 erode quickly. It is not easy to trade stocks with DRIPs. Thus, your money will stay put and grow for you.

    TOP

    * * * *

    Q If I hold dividend reinvestment plans in an Individual Retirement Account, do I have to reinvest dividends?

    A You cannot take distributions from an IRA without incurring at least taxes on the distributions and penalties if you are younger than age 59Ĺ. Thus, if you take receipt of dividends from DRIP IRAs, that would be considered a distribution for tax purposes. Now, letís say you have DRIPs in an IRA that is being administered by a trust company. If the trust company offers a money market account within an IRA, it might be able to place the dividends within the money market account instead of reinvesting them in the stock. Keep in mind that the dividends are still held in an IRA (the IRA money market account), so you still wonít be able to receive them without incurring taxes and possibly a penalty. Bottom line: Make sure you reinvest dividends on DRIPs held in IRAs.

    TOP

    * * * *

    Q One of the problems I see with investing in dividend reinvestment plans is that you donít have precise control over the buy and sell price. To me, this is a big deal. What do you think?

    A I would agree that you donít have the control over the buy and sell price through dividend reinvestment plans that you have investing with a broker. Fortunately, the situation is improving in the DRIP world. Many dividend reinvestment plans now purchase shares weekly or even daily, when practical. This is a far cry from the quarterly or monthly buying patterns of most DRIPs five or 10 years ago. Also, a number of dividend reinvestment plans now permit DRIP investors to sell their shares on a daily basis via the telephone. This has greatly improved the transaction speed on the sell side.

    Quite frankly, the fact that I donít have precise control over the buy and sell price doesnít bother me. I figure that, over time, Iím just as apt to buy shares at a more favorable price than I am to pay a higher price. And since I sell so infrequently, the fact that I cannot sell shares now doesnít concern me. In fact, I think one of the things that gets investors into trouble is that it is too easy to buy and sell stocks these days, especially with the advent of online trading. I think too many investors trade stocks simply because they can, rather than because they should. I also think that having precise control over the buy and sell price may cause you to try to "micro" time purchases and sells. I canít tell you how many times Iíve seen investors fail to buy a stock simply because the stock never fell to that investorís "buy" price. If you try to finesse the purchase price too much, oftentimes youíll never buy the stock because it rallies away from your target price. Donít worry so much that you cannot buy stock in dividend reinvestment plans at a precise price. If itís a good stock and youíre investing for the long term, it shouldnít matter.

    TOP

    * * * *

    Q What is the best way to sell stocks from a dividend reinvestment plan?

    A This is a timely question since I recently sold one of my dividend reinvestment plans. Most DRIPs allow investors to sell stock directly from the plans. Companies may require DRIP participants to notify the plan in writing with their sell instructions. However, a number of companies, such as Browning-Ferris, allow DRIP participants to sell their shares via the telephone.

    Here are the steps I followed:

    ē Before I sold my DRIP shares, I first had to clear up a potential problem. When I purchased the initial shares I needed to join the DRIP, the broker sent me the stock certificate representing those initial shares. Once I joined the DRIP, I was reinvesting the dividends on all my shares, both the shares I held in the plan as well as shares I held in certificate form. If I called to sell my DRIP shares, however, the firm would have sold the shares held in the plan but wouldnít have sold the shares I held in certificate form. Thus, I would have been stuck trying to sell the five shares I held, which would have been more costly and less convenient. Thus, before I sold my shares, I sent my stock certificate representing five shares to the company to hold for me in book-entry form in the DRIP. After obtaining the mailing address from the transfer agent, I sent the certificate via registered mail.

    ē Once all of my shares were held by the company, I called the toll-free number provided by the companyís transfer agent. I gave the instructions to sell all of my DRIP shares.

    ē It will take a few weeks to receive the sale proceeds.

    As you can see, selling through the company may take some time. If you are concerned about speed on the sell side, make sure your DRIP is holding all of your shares. Also, an alternative to selling through the plan is to sell your DRIP shares through a broker. To sell through a broker, youíll need to have the transfer agent send you a certificate representing all of the shares you own in the DRIP. Once you have the stock certificate, you may go to a broker and sell the shares immediately. Keep in mind it may cost you more to sell through a broker than through the dividend reinvestment program.

    TOP

    * * * *

    Q What are some of the tax implications of investing in DRIPs?

    A Concerning DRIPs and taxes, there are a few key things to remember:

    ē Even though dividends are being reinvested, they count as ordinary income for tax purposes. Therefore, remember to include reinvested dividends as part of your income. Companies will send you 1099 forms at the end of the year showing how much was paid in dividends.

    ē It is important to keep track of the stock price each time you make purchases in a DRIP. This cost basis will come into play when you sell stock and have to determine your cost basis for tax purposes. If you can identify the shares of stock sold, your cost basis is the cost of those particular shares of stocks. However, if you sell securities at various times and cannot identify the shares that are sold, the cost basis of the securities sold is the cost of the securities acquired first ó the "first-in, first out" method.

    ē You must report as income any service charges paid on your behalf by the company, although you can deduct these charges in the year they are paid as a miscellaneous deduction if you itemize.

    ē If you purchase shares at a discount, you must report as income the difference between the cash you invest and the fair market value (full value) of the stock you buy.

    TOP

    * * * *

    Q What happens to my DRIPs when I die?

    A As is the case with any securities or other assets, presumably you distribute the DRIPs via your will. Heirs to the DRIPs need to go through the transfer agent of the DRIP companies in order to change the registration. One benefit for individuals who inherit stocks, including DRIPs, is that the cost basis for the securities is "stepped up" to the price at the time the stock is inherited. Thus, letís say your grandfather was fortunate enough to buy McDonaldís in the í60s and accrued huge capital gains during that time. If he leaves McDonaldís stock to you, your new cost basis which comes into play for tax purposes when shares are sold, is the price on the date of his death.

    TOP

    * * * *

    Q Iím interested in getting my grandson started in DRIPs. How can I go about giving him DRIPs as a holiday gift?

    A Itís becoming more common for parents and grandparents to forgo the music CDs and video games to purchase gifts of stock for their children and grandchildren.

    Itís very easy to give the gift of DRIPs. One way is by transferring some shares you may have in a DRIP to another party. This is the easiest and quickest way to enroll someone in a DRIP.

    The process of transferring shares is relatively simple, although it may differ slightly depending on the company and its transfer agent. Generally speaking, individuals who want to transfer shares need to obtain a "stock power" form from a brokerage firm or bank that conducts transfers. Fill out the "stock power" form and include the name, address, and social security number of the individual to whom you are transferring the shares. You must have a "medallion" signature guarantee on the stock power. This guarantee is usually available at a bank or brokerage firm. When you have completed the form and obtained a "medallion" signature guarantee, return the form to the company or its transfer agent. You might want to include a letter stating your intentions and specifying that you would like to enroll the individual directly into the DRIP. Most companies will oblige. If the transfer agent does not enroll the party directly into the plan, the individual will receive a stock certificate and, in most cases, a DRIP enrollment form. The individual who is receiving the transferred shares will need to fill out the enrollment form and return it to the company. Once the company receives the enrollment form, the individual can usually start investing directly in the DRIP.

    If you do not own stock in a company in which you want to give shares as a gift, check to see if the firm has a "gift-giving" feature in its DRIP. A number of no-load stock plans offer this feature. I have opened "gift" accounts for my parents and found the process very easy.

    If you set up an account for a child, consider setting up a Uniform Transfer to Minors Account (UTMA). Funds in the account are in the minorís name and social security number and are considered to be owned by the minor. Dividends paid on the account are taxable, most likely at a preferred tax rate. The adult custodian is responsible for the account until the minor reaches the age of majority. Any withdrawals from the account are payable to the custodian on the minorís behalf until that time. If you are interested in creating a UTMA, contact the companyís shareholder services department for the proper forms.

    TOP


    Still need help? Ask Chuck your questions. Just log in and visit the message board section of our site. >>

    SNOP


  5. #5

    Post

    Checked your drips website. Looks great! Thank you.

  6. #6
    True blue Filipino snop's Avatar
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    Thumbs up

    Drips are a way to begin investing with a very small amount of money, and to keep investing monthly (or as frequently as you can afford) in small or large amounts, while avoiding brokerage commissions and reinvesting all dividends, too. In the long-term, it's a great and "patient" way to grow money over time, as you have dollar-cost averaging working for you as well, and you're investing, ideally, in great companies that you can't foresee selling at any time.

    SNOOPY

  7. #7
    True blue Filipino snop's Avatar
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    Post Oy, pareng Kabise!

    Thanks again for giving me a new nickname! I luv it!

    SNOOPY


  8. #8
    Tindero sa 168
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    Post

    is your drip is the same as this?

    http://www.aigvalic.com/valic2000/valicweb.nsf

    this is where my retirement money goes. i pick all science and technology plans. i'm in negative so far. what do i have to do, just live it alone or cash in?

  9. #9
    True blue Filipino snop's Avatar
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    Post

    To Kabise,

    Hindi, pero ang kapatid kung nurse ay with Valic. Meroon din syang BGE, MDXBX, GE, among other things....

    Ako, marami. Biggest portfolio ko ay ANACX.

    Gising ka pa?

    SNOOPY

  10. #10
    True blue Filipino snop's Avatar
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    Post

    "this is where my retirement money goes. i pick all science and technology plans. i'm in negative so far. what do i have to do, just live it alone or cash in? "

    Hindi ko alam kung cash in or leave it alone. Three years ago, kinash in ko na ang AOL, YAHOO, DELL, and other Internet/IT related non-DRIPS ko...

    Didn't expext the melt down or the 9/11..thanks to Manong Warren Buffet..

    Am more into rental/real estate/franchise na.


    SNOOPY


  11. #11
    True blue Filipino snop's Avatar
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    Post

    Ang kapatid ko sa North Carolina na Engineer with Seimens lost a bundle with IT pero he is holding.

    Like you, bata pa siya and can wait. He has also MDXBS, GE, etc. DRIPs giving him $100 a month...extrapolate mo yan with the power of compounding 10-16 years. when he retires. he might stand to earn $500-1000 a month. state and federal tax free.

    Meron din siyang Roth IRA and Waterhouse, etc......


    SNOOPY



  12. #12
    True blue Filipino snop's Avatar
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    Post

    Ang kapatid ko sa North Carolina na Engineer with Seimens lost a bundle with IT pero he is holding.

    Like you, bata pa siya and can wait. He has also MDXBS, GE, etc. DRIPs giving him $100 a month...extrapolate mo yan with the power of compounding 10-16 years. when he retires. he might stand to earn $500-1000 a month. state and federal tax free.

    Meron din siyang Roth IRA and Waterhouse, etc......


    SNOOPY



  13. #13
    True blue Filipino snop's Avatar
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    Post

    Ang kapatid ko sa North Carolina na Engineer with Seimens lost a bundle with IT pero he is holding.

    Like you, bata pa siya and can wait. He has also MDXBS, GE, etc. DRIPs giving him $100 a month...extrapolate mo yan with the power of compounding 10-16 years. when he retires. he might stand to earn $500-1000 a month. state and federal tax free.

    Meron din siyang Roth IRA and Waterhouse, etc......


    SNOOPY



  14. #14
    True blue Filipino snop's Avatar
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    Post

    Ang kapatid ko sa North Carolina na Engineer with Seimens lost a bundle with IT pero he is holding.

    Like you, bata pa siya and can wait. He has also MDxBX, GE, HD, etc. DRIPs giving him $100 a month...extrapolate mo yan with the power of compounding 10-16 years. when he retires. he might stand to earn $500-1000 a month. state and federal tax free.

    Meron din siyang Roth IRA and Waterhouse at $12 per buy/sell, etc......

    Ako, I lost a bundle with WORLDCOM and ENRON. Wish I consulted Garfy and Rebo. Pero sa cash allocation ko, less than 1 % loss lang yun sa total net worth ko.

    Ang kapatid kung pharmacist and her Gringo husband filed for bankrupcy in Chicago because they spent more than they earned, went into DRIPS 10 years ago.

    Now, they're solvent and happier.

    SNOOPY



  15. #15
    True blue Filipino snop's Avatar
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    Post

    Sorry, Kabise nag hang-up na naman ang mura kung PC........... Triple posting.

    Sa katipiran ko, hirap akong magpost. Hamot bibili ako ng bagong, inaasam-asam kung Pentium 4.

    I may have mis-represented DRIPs.

    Your Valic is company sponsored plan, di ba? Just like my sister dyan sa San Francisco. I assume, mey matching option yun. At saka Valic is tax-deferred.

    Whether you can change the cash allocation in the retirement plan within the company you work for...i.e. liquidate your IT stocks, I don't know. It's safer to ask them. - the pension plan/financial advisors.

    Valic is not DRIPS!

    First, make sure your retirement fund (Valic) is fully funded. Sa East Coast, one can contribute max of 25% or whatever less. Take advantage of the matching program nila, kung meroon.

    Then, pag mey sobra ka pang pera, invest $2000 into Roth IRA.

    Both of the above ay mey 10% penalty for premature withdrawal.

    Then, kung meyroon pa pang sobrang pera, invest in DRIPS!
    Taxable ang dividends earned here. So when you decide to stop the re-investment and spend the dividends, you don't have to pay taxes.

    With me, I stagger all my DRIPs. For example, GE gives me quarterly dividends on Jan. Another one like MCD which gives dividends in Feb. and another one like BAC which gives dividends in March.

    So, every month I have supplementary money to spend....maliit nga lang but think about it when I finally retire, dagdag ito sa SSS $1200/mo at age 62, and the company pension plan.

    SNOOPY















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  17. #16

    Post

    I assume DRIP is an investment scheme for US Companies.

    How about investing in the stock market here? Would you take that risk?

  18. #17
    True blue Filipino snop's Avatar
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    Post Thanks for visiting, bro!

    "I assume DRIP is an investment scheme for US Companies. How about investing in the stock market here? Would you take that risk? "
    _________________________

    Thatís partly correct. DRIPs are mainly US based.

    However, I have one from Canada called WDOWX, through DT Waterhouse, a mutual fund that deals with all the 30 companies of the DOW, including Microsoft. It gives me a monthly dividend that is re-invested to buy more shares Ė as of last Friday price: $9.58/share.

    In addition, a few European Companies, for example, a German owned Chrysler-Daimler that I have offer DRIPs.

    Been studying Japanese DRIP Companies like SONY and Toyota for a long time because I use their products every day but am still skeptical.

    My sister and my 18 yr old niece are into DRIPS composed of Australian Companies. I donít know specifically which companies. They live in Sydney.

    Dito sa Pinas, walang DRIPS. ANG SAKLAP! Mey dividends pero hindi automatically re-invested. I heard they are working on it.

    I have studied the Philippine Stock Market for more than 10 years. I even visited the Makati Stock Exchange with my children twice. WALANG TRANSPARENCY, PESO DEVALUATION, ETC!

    Finally, when ERAP and the BW scandal came and went, I bought blue chip companies like AC, ABS-CBN, SM, PLDT and SM just to keep my feet wet. Bagsak ng 40%!

    No, I wonít take the same risk again.

    Until we have a Cultural/Economic/Political/environmental solution to our woes.

    Maybe, if you run as vice-president in Flavierís presidential ticket, I might take the risk again! All my Filipino Mensa friends can be your cabinet members.

    Make Cool ambo your Press Secretary!

    SNOOPY


  19. #18

    Post

    Here's a tip.

    There's currently a proposal at Philippine Stock Exchange to give 10% discount to small investors for IPOs. Maximum investment is P25,000. So if you have enough relatives that you can trust in here, you can spread out your investment among them and earn instantly 10% if the price remains as the IPO price. But usually, IPO prices go up in the first few days. So that's more than 10%.

    That's quite unfortunate that you are not willing to risk again. Can't blame you. I hope the day will come when you gain back the confidence to invest in here.

  20. #19
    Tindero sa 168
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    Oct 2000
    Location
    Nueva_Ecija

    Post

    I will back up Rebo for president if he will promise that the first thing he will do is make morning after pills mandatory to every household. it is well known that greater than 50% of pregnancies are unwanted. forget about what Sin and the catholic is saying, we need to slowdown our population growth.

    if you are an investor, that population explosion is a sure buy. just look at the graph.

    lemme see if i understand drip, i can buy part of Walmart, Home Depot, Nabors and Microsoft for a small amount every month? how much is the minimum amount i can invest? and this is not a fly by night scheme, right? who is your auditor?

  21. #20
    True blue Filipino snop's Avatar
    Join Date
    Aug 2002
    Location
    Sucat Paranaque

    Post

    ďHere's a tip.

    There's currently a proposal at Philippine Stock Exchange to give 10% discount to small investors for IPOs. Maximum investment is P25,000. So if you have enough relatives that you can trust in here, you can spread out your investment among them and earn instantly 10% if the price remains as the IPO price. But usually, IPO prices go up in the first few days. So that's more than 10%.

    That's quite unfortunate that you are not willing to risk again. Can't blame you. I hope the day will come when you gain back the confidence to invest in here.Ē
    ______________________________

    Thanks for the tip, bro! My wife did mention something she read in Manila Bulletin. Was preoccupied at that time. Iíll start researching. Do you have a name or brochure or something like this?

    <<Nuveen Quality Preferred Income Fund Raises Over $960 Million in Common Share IPO
    June 26, 2002 08:46:00 AM ET
    CHICAGO--(BUSINESS WIRE)--June 26, 2002-- Launch of First Closed-End Exchange-Traded Fund in Asset Class Marks Another Milestone for Industry Leader Nuveen Investments

    Nuveen Investments, a leading sponsor of closed-end exchange-traded funds, announced that its newest closed-end ETF has completed its initial common share public offering. The Nuveen Quality Preferred Income Fund (ticker JTP), a fund investing primarily in investment-grade quality taxable preferred securities, will begin trading on the New York Stock Exchange (NYSE) today.

    The fund will invest in preferred securities issued by what it believes to be strong, highly-rated companies, and has a primary investment objective of high current income consistent with capital preservation. According to Lipper, Inc., this fund represents the first opportunity for investors to participate in a U.S. closed-end exchange-traded fund invested primarily in investment-grade quality taxable preferred securities. The successful common share offering raised a total of approximately $965 million, assuming full exercise of the underwriters' overallotment, which may not occur.

    "We believe that the success of today's launch demonstrates the growing awareness on the part of investors and their advisors of the need to achieve balance within their portfolios by employing conservative diversification strategies," says Ted Neild, Managing Director, Nuveen Investments. "We're pleased to offer a fund providing investment-grade quality taxable preferred securities that historically have had a low correlation to several other asset classes, which seeks to provide investors with high current income and may provide them with the potential for enhanced capital preservation.

    In addition to the common share offering, the fund expects to issue preferred shares later this summer, which, if completed at anticipated levels, would bring the total assets of the fund to approximately $1.3 billion, assuming full exercise of the common share underwriters' overallotment, which may not occur.
    The lead manager of the common share underwriting syndicate was Salomon Smith Barney Inc.

    Spectrum Asset Management, Inc., an affiliate of Principal Capital Management, a leading manager of preferred securities with approximately $1.6 billion in assets under management--not including assets raised in this offering--will sub-advise the fund. Spectrum is based in Stamford, Connecticut, and began operations in 1987. The firm is led by two principals with a combined 50 years of preferred securities experience.
    The fund seeks high current income consistent with capital preservation, with a secondary objective of enhancing the portfolio's value relative to the market for preferred securities. Shares of closed-end exchange-traded investment companies, like the fund, usually trade on a national stock exchange. Like other stocks, share prices will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. The shares of closed-end exchange-traded funds often trade at a discount to their net asset value. Shares of the fund also may trade at a discount to their original offering price.

    For a prospectus, which contains more details about the fund, including risk considerations, charges and expenses, investors can log onto www.nuveen.com/etf. One may also obtain a copy of the prospectus by contacting their securities representative or Nuveen Investments, 333 W. Wacker Drive, Chicago, IL 60606. Investors should read the prospectus carefully before they invest or send money.>>

    Source: MSN Money

    After reading the prospectus, July 1, 2002, bought this IPO at $15/share. First monthly dividend was $0.103/share distributed on August 15, 2002. Overall plan was to leave the principal alone and live on the monthly dividend.

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