Lessons Learned From 20 Years of DRIP Investing

As my investing strategy has evolved over the years, I’ve completely moved away from DRIP (dividend reinvestment plan) investing.

In part, because of the extra 1099-DIV tax form and costs basis data. The varying fees are annoying too.

But also because I prefer to pool dividends and reinvest them into more undervalued stocks.

I still believe DRIP investing can be a good way to learn about stock investing, and DRIPs are a solid tool for building core holdings. But the attributes and benefits of the transfer agent/DRIP investment vehicle have been replicated by various online brokers.

The reality is, you no longer need to DRIP to invest small dollar amounts or reinvest dividends. Now that most online brokers are commission-free, I see no reason for retail investors to invest via the DRIP, except for employee plans. 

During the years since my uncle gifted me one share of Chevron (CVX), I’ve learned this and some other lessons about DRIP investing.

That is the topic of my guest post on the Dividend Growth Investor blog. DGI is one of the top dividend growth bloggers out there. He’s been around forever, and in just eight years, grew a portfolio of stocks that generates more than $15,000 of dividend income annually.

We should all be envious of that kind of wealth-building!

DGI is one of my favorites, so it’s a thrill to be featured on his website today. Please visit his site to read my blog post Four Lessons Learned From 20 Years of DRIP Investing. Hang around to learn dividend growth investing from one of the best.

Click here to read the post!

Craig Stephens

Craig is a former IT professional who left his 19-year career to be a full-time finance writer. A DIY investor since 1995, he started Retire Before Dad in 2013 as a creative outlet to share his investment portfolios. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Read more.