Does Drip Investing Still Make Sense?
Whether you're investing in mutual funds or individual stocks, you want to do your best to minimize fees. They may seem small individually, but in bunches, and over time, they can really take a bite out of your returns. For that reason, financial advisors have long recommended using dividend reinvestment plans, which steadily plow your quarterly payouts into more shares of the companies that pay them, boosting your stake commission-free and hassle-free.
However, in light of recent moves by major brokerages to eliminate trading fees, is that strategy still the best choice? In this segment of the MarketFoolery podcast, host Chris Hill and senior analyst Ron Gross weigh in on other possible ways to get more out of your dividend payouts now.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Source Fool.com
