Conference nyoss1::market_investing

I've only done this once, with AT&T.

IMHO, the costs of keeping track far outweigh the benefits, unless you are 
dealing with large dollar amounts.

As I recall, you save no more than about 5% (+commissons) with any company 
offering a DRIP. I think you could do better by dollar cost averaging into a 
good growth mutual fund.

I've currently got DRIP's with 8 companies, and plan to continue investing
in them.  I just added 4 of these companies, so have very little shares
in those, but will be adding money monthly to build up a little nest egg.
I have had very good luck with DRIP's and don't find them to be too much
work.  I just keep all the statements, and keep a running total so I always
know where I stand on each stock.  It's worked for me so far, and has
allowed me to diversify without needing a lot of money (some of the stocks
I have I consider to be in the higher-priced stock category).  

I just did an evaluation of the 4 stocks I've had for a while in the DRIP's,
and found that their value has increased quite nicely over the time I've
held them.  Can't complain about that.

   I have a DRIP with Chemical Bank.  I like it, it seems to be a painless 
way to do dollar cost averaging into a specific stock.  The record keeping 
isn't difficult if the company keeps the certificates.  I get a statement 
quarterly that itemizes all of the purchases so I don't think it will 
be a problem.
   The only record keeping problem is at tax time after you sell the shares,
but I don't think it is any worse than re-investing dividends in a mutual
fund.  Also, this is a long term investment so selling shares is not an issue.

Brian

    
    	Ditto to .2 and .3, I have about 8 DRIP's and find they are a very
    convient way for me to DCA to a stock.  The paperwork is not a big
    chore, no more so than a mutual fund.  I think that when investors
    realize how easy it is to set one up, maintain and their low cost they will
    apprecitate them also.  In a way I prefer them over mutual funds since
    I can exert more control over which stocks will be purchased or sold.
    All I have to do is outperform Fidelity Magellean, Steinroe Special,
    20th Century Ultra, etc. - no simple task but fun to try. 
    
    Ken

    Hi, I have a question to those who prefer to select their own stock
    portfolios. What do YOU look for in a stock to make buy or sale 
    decisions? Is it low P/E ratios, high corporate profit, under valued
    stocks, others things or a combination of all the above? I just think
    it'd be interesting to hear what different people's opinions are.
    
    Mike

    Divident re-investment is not dollar-cost averaging: the dividends
    will not be constant dollar amounts.  In particular:
    
    1.	They will tend to grow in the long term (which is fine, and 
    	might be considered an inflation adjustment, i.e a "real-dollar"
    	cost average);
    
    2.	They will tend to grow as the number of shares you own increases
    	(which may be fine, but isn't DCA);
    
    3.	They will tend to be higher in good times for the company and
    	lower in bad times.  Depending on whether the relative increase
    	in the dividends is greater than the relative increase in the 
    	stock price, this may mean any one of the following (or mixtures
    	over time of all of them):
    
    	a.  Purchasing a constant number of shares;
    
    	b.  Purchasing more shares when stock is expensive and
    	    fewer when it is cheap--this is the opposite of DCA, 
    	    and raises the average cost per share;
    
    	c.  Purchasing fewer shares when the stock is expensive and
    	    more when it is cheap--like DCA, but the dividends are
    	    not likely to be constant.
    
    DRIP is not DCA.
    
    		-John Bishop

    John,
    		I agree that the use of dividends is not DCA'ing.  To help
    clarify the previous notes about DCA with DRIP's  is that typically
    when you enter such a plan not only do your dividends become
    automatically reinvested but you are also allowed to contribute
    additional money to purchase shares.  There are usually no commission 
    charges for these purchases - in fact some even give you a discount on
    the additional shares. 
    
    		Most plans either will allow you to purchase on a monthly
    or a quarterly period.  The only restriction is  they usually put a
    cap on how much you may contribute during these periods and the shares
    are purchased on specific dates. 
    
    		Therefore the principals of dollar cost averaging may be
    applied to DRIP's as well if you are allowed to purchase additional
    shares on a regular basis.  I hope this helps to explain it and I
    apoligize for any confusion. 
    
    Ken
    

re .5:

I don't DRIP (I invest mostly in stocks that pay no or very low dividends),
but I've done best in stocks that I've picked because their products were
unique and good.  Examples -- Tandem in 1978 (sold at 10 times my cost),
Scitex around 1982 (holding at 12 times my cost).  I've invested in my share
of dogs, but none of them on the basis of product.

    
    	I phoned Proctor & Gamble's DRIP phone number about a 
    	month ago. I left my name and address as requested and 
    	I'm still waiting for the DRIP package to arrive.
    
    	Anyone have an idea whether this is still a normal timeframe?
    	(6-8 week delivery?)
    
    	Bob

    
    	It is not.  All that I have requested from others shows up
    	within days, a week at most.
    

   I sent for mine by mail and it was about 4 weeks before it showed up so they
do not work real quickly. I was beginning to think that I was never going to see
it.

		/Ken

    re: .9
    
    I have been waiting at least a month. Any suggestions?
    
    

    
    	Sure, call 'em again.  What can you lose?
    

    I requested their DRIP form (left a message on their answering machine)
    and received it two weeks later.  This was in August.

I subscribe to a financial newsletter that specializes in recommending
individual companies with DRIPs:

  The Moneypaper
  1010 Mamaroneck Avenue
  Mamaroneck, NY 10543
  914-381-5400

Most company DRIPs require that you already be a shareholder to become
enrolled.  The Moneypaper runs a buy-one-share program to minimize DRIP
start-up cost (namely, broker's commission).  Each month the newsletter
lists about twenty companies.  For each company a subscriber may purchase
one (and only one) share of stock at the current price plus a fee of $15.
The fee for previously listed companies is $20.  The DRIP enrollment
process can start once you have received the single share.

For zero start-up cost, here are a few companies that will let you buy your
first share(s) directly:

        Central Vermont Public Service
        Citibank
        Exxon
        Mobil
        Proctor & Gamble
        Texaco
    
  -Jerry Horton

    I think DRIPs is a very good idea.
    
    One can build a sizable nest egg by following this program for
    retirement income.
    
    Can some of you who have 4 or more DRIPs that are investing in mind
    sharing with us the company you invest with, and some background 
    information which would help some of us decide who to go with. I beleive
    there are in the vecinity (spelling) of 1000 or more that participate in
    the DRIP program and some may be more appealing then others.
    
    I realize one can get a list through some organizations but there is
    nothing like first hand info from participating members in the program.
    
    One more question I realize that Disney does not participate in the
    DRIP program anymore but can you still buy the stock through the Disney
    Corp. itself withough going through a broker, I beleive it is a good
    investment for a long term grouth stock.
    
    Frank
    

    Todays quote on OSTR    $5 1/4 + 7/16
    
    keep om trucking........!