Who are your DRiP favorites?

FirefighterB said: "I'm thinking about slapping together a DRiP portfolio, thanks to some of you wise old-timers (said with the utmost respect...hey, wait, put the cane down...). Thanks to a heads-up good idea from Scott, I've got a way to "cheat" the system. Instead of signing up for a plan that is going to cost me a set amount a year, I'm going to open a Zecco account. Through them, they'll allow 10 free trades a month as long as I have $2,500+ in the account. So, I figure I could move some money over there to get the free trades. Then, each month, I could transfer in whatever amount I want to drip into the account and purchase up to 10 stocks free of charge. Heh, take that, $4 Sharebuilder fee. Even if they do start charging, it's only $4.50 a trade. Anyway, I've been scouring looking for good 'uns. and I've come up with a few that I'd appreciate any input you guys might have. I'm thinking somewhere between 5-10 that are spread out over the spectrum. I don't really care if they are likely going to see declines over the next few months/years because, hell, I'm DCA-ing them and the cheaper the better (within reason, of course), right? So, here goes: HD - 3.38%. It's been beat up and likely will continue to be, but it'll be back. T - 3.88%. It's near 52 week highs, but was even higher than now previously. The lows reached during 02-05 are much lower than now, but it's a good company BAC - 6.07%. Banks are beaten, but not necessarily this one. However, such a high yield might get cut C - 7.04%. Again, they'll probably cut it or cancel it and the stock will go lower but, c'mon, it's C. Besides for touching below 30 in 02, it's been almost 9 years since it was this low. GE - 3.36%. While a touch high on the P/E, it's in a middle 52-week range and it's huge. The dividend is almost as certain as death. GM - 3.77%. With the exception of a dip in late 05/early 06, the stock hasn't been this cheap since I around when I was born. Their EPS SUCKS, but they've always paid it and they already slashed their div in 06. NI - 4.87%. I wanted to throw a utility in there. Most of the other ones are way up or pay a crappy div. This one has a high div and has solidly paid it for almost 20 years (with one cut). I'm open to critiques and suggestions, fellers. I know there are a lot of great other companies out there like BUD, MCD, KO, MO, etc. that pay divs, but they're mostly sub-3% and, currently, at the top of 52 week range and 10 year range (with the exception of KO). Whaddya think? You guys have any input on these or on any of your other personal favorites? Thanks."

Rbreb13 said: "ED- 5%, ConEdison, nothing wrong with having a strong utility in there. Hell, being in NY you probably pay them every month anyways, why not make it back? LOL EGLE- 6.2%, Eagle Bulk Shipping, global play. MO- 4.2%, Altria, strong performer. You shouldn't discount the sub 3% divy stocks. Strong companies is what you look for. GIS is only 2.7% (at this time, I'm sure its been lower) and look what it did for me over 40 years. Check out Dividend Achievers, Corey can help with some suggestions I'm sure. [url]http://www.dividendachievers.com/[/url] I'd say forget GM. No upside there IMO."

Airelon said: "Sorta weird. I was just talking about this yesterday and today in my blog; how DRIP's sort of set up a type of automatic dollar-cost average for your portfolio. Here's my input . . . [B]HD[/B] - I agree that it's going to continue to be beat up. HD isn't currently in my portfolio, and with recession fears (whether or not one comes to pass) as well as a housing bust that is ongoing, I personally wouldn't be a buyer at this point. However, HD is most definitely in my radar. I also think they are protected and will make a great buy after the beating is over, since their dividend is already on the smaller side, they don't have to worry about slashing it as much as some other stocks. If I was already holding HD I would be enjoying the DRIP ride as we go along. As it is, it's on the radar, but I'm not a buyer yet. But they've been paying those divvy's since 1987, and their dividend growth rate is 32.15% on the 5 year. This puts us [i]wayyy[/i] above inflationary fears. Someone remind me why I'm not buying again? :) [B]T[/B] - Yeup. Love the T. If I didn't already own some, I'd probably wait for a bit of a pullback to be a buyer. But love this stock as is. AT&T has been paying out dividends since what? 1881? Yeah, I see some stability there. :) Their 5 year dividend growth rate average is 4.08%. It's no HD, but at the same time - it's above inflation but their payout average is 73% !! They are very serious about paying their shareholders, but at the same time, caution is needed there - with so much of their profits going towards attracting shareholders. [B]BAC[/B] - Another one I hold in my portfolio, and I couldn't be happier. Of the biggies in the financials - I think BAC stands to whether the storm much better than, say Citigroup. Some statistics. They've been paying dividends since 1903 !! Their 5 year dividend growth rate average is 13.44% and their payout ratio is 44%, which is much better, than say T. And heck, their P/E is what right now? Like 9.56 or something when it's held 63% institutionally? Good lord. If this isn't a "Warren Buffet" type buy right now, I don't know what is. :) [B]C[/b] - Probably the first one that I wouldn't be a buyer in. Not that I mean to dis the Buffet-man, but my gut tells me that C is being put up as one of the poster children for the sub-prime by the financial media, which is why I think Morgan Stanley put out a short on these guys. Their dividend history isn't quite as long (Since 1987). Who knows. I could be completely wrong here. This is just one I didn't really want to buy, especially after the dividend cut. [b]GE[/b] - The best thing that can be said about GE is - I mean - come on - [i]It's freaking GE[/i]. Seriously, rock solid company - 61.60% held by institutions - and as old as the hills. This is the kind of company you definitely buy at current prices - and people have been praying for this sort of pullback. [b]GM[/b] - I'm not a big one for GM. At all. Yeah, they've been around, but the auto industry is going through monumental changes the kind that I don't remember ever existing. I see the auto industry as in more trouble now, than when I was a kid in the late 70's, early 80's and people were being laid off around here left and right. [b]NI[/b] - EPS is a bit low for my tastes, though it's a smart move for diversifications sake. Here are some more of mine: PEP, KO, and JNJ [SIZE="3"][B]Shipping:[/B][/SIZE] [B](The dividend sexy sector :) )[/B] [b]GMR[/b] - GMR has had the snot kicked out of their stock price, but I routinely listen in on the shareholders meetings and never have I so believed in a company that has had their stock price going nowhere. The charts don't tell the whole story though as part of that drop was from a huge divvy they paid out to shareholders. They still have a buyback planned, as well as a savvy bunch at the helm. Stock prices are as cheap as I think we're going to see with them. I've bought a lot of GMR, and some to Dollar cost average at these lower prices. $2.20 per share annual - of which the management team consistently assures the shareholders they are dedicated to. This is a wierd one that lists as a non-DRIP at Dividend Investor, but I'm staring at the DRIP purchases right now in my transaction column [b]FRO[/b] - I mean, come on - if you're going to be in the shipping field, and you like Dividends - it's sort of a given that you have to own FRO. Sexiest stock I own, and I seem to have added major capital to purchases at all the right times. This is sort of my favorite child. $6.00 freaking dollars per share annual. Their payout ratio is high, but they have a management team who's sole purpose when it comes to the shareholders is to reward them with a high divvy. That's their main strategy. And they have proven over the years that they are very savvy. Again, this is a wierd one that lists as a non-DRIP at Dividend Investor, but I'm staring at the DRIP purchases right now in my transaction column [b]SFL[/b] - Another $2.20 per share annual company if memory serves me correctly. I originally got this one as a dividend payout from FRO, so it's sort of been a bit of gravy, and I added to my position a couple of months ago here in the 26's. Same deal with the DRIP. Lists as a non-DRIP, but I have DRIP purchases with them. [SIZE="3"][B]Other:[/B][/SIZE] [b]COST[/b] - First of all, I just like Jim Senegal's approach and style. I'm one of those people that like to have COST in my portfolio on principal, and refuse to ever go near Walmart - if my life depended on it. [b]MS[/b] - Yeah yeah, I know. I didn't like C, but I'm in for MS? Yeup. I bought some introductory a while ago, and enjoy that they haven't punched below that $50 mark, with some of the worst news that has been directly aimed at them. I'll probably add more direct capital purchases towards MS around March, if it looks like they've weathered the storm well enough. For statistics to check out on any divvy stocks you might be looking at, I suggest the title page of [URL="http://dividendinvestor.com/?symbol=BAC&submit=GO"]DividendInvestor.com[/URL]. You just plug in whatever stock you're looking at, and it brings up all the facts that a dividend investor seeks, all displayed nice and neat. What is strange however, is that some of those stocks list as non-DRIP's - but I just double checked my portfolio, and I'm sitting here staring at the DRIP purchases on those stocks."

Harry said: "FirefighterB wrote... [quote] So, here goes: HD - 3.38%. It's been beat up and likely will continue to be, but it'll be back. T - 3.88%. It's near 52 week highs, but was even higher than now previously. The lows reached during 02-05 are much lower than now, but it's a good company BAC - 6.07%. Banks are beaten, but not necessarily this one. However, such a high yield might get cut C - 7.04%. Again, they'll probably cut it or cancel it and the stock will go lower but, c'mon, it's C. Besides for touching below 30 in 02, it's been almost 9 years since it was this low. GE - 3.36%. While a touch high on the P/E, it's in a middle 52-week range and it's huge. The dividend is almost as certain as death. GM - 3.77%. With the exception of a dip in late 05/early 06, the stock hasn't been this cheap since I around when I was born. Their EPS SUCKS, but they've always paid it and they already slashed their div in 06. NI - 4.87%. I wanted to throw a utility in there. Most of the other ones are way up or pay a crappy div. This one has a high div and has solidly paid it for almost 20 years (with one cut). I'm open to critiques and suggestions, fellers. I know there are a lot of great other companies out there like BUD, MCD, KO, MO, etc. that pay divs, but they're mostly sub-3% and, currently, at the top of 52 week range and 10 year range (with the exception of KO). [/quote] My favorites... [B]T[/B]...safe bet [B]MCD[/B]...this stock is on a tear. I can easily see it chug to "100" in any enviornment...due to international penetration. [B]GE[/B]...CEO spoke this week...humdrum guidence...left with more questions than answers. [B]GM[/B] Not this year...maybe "09" [B]MO[/B]...a good trade [B]HD[/B]...expectations are low so sell on strength at earning announcement...maybe? [B]KO[/B]...safe [B]NI[/B]...interesting chart. I wanna study this company more. [B]Banks and Financials[/B]...I've had my ear to the rail. We have NOT seen a bottom yet. Wait till they cut dividends...they'll be bottom'ish then. It will get to that. High inflation > no more rate cuts."

Airelon said: "Sorta strange as I've seen this topic come up repeatedly lately at different forums, and at the same time, this is something I've been talking about in my [URL="http://investorandtrader.blogspot.com/"]blog[/URL] for like the last 3 days . . ."

FirefighterB said: "I agree with quite a few of these stocks "being in trouble," but isn't that kinda a good thing when you're talkin about a DRiP and LONG term investing? I mean, to me, these beaten down companies that might see more down are GREAT. I mean, I'm going to be making my base-stake, but then I want to add to it every month. If they go down over the next year or two, that just means I'm pickin more up for my money. Most of these also inspire me more when I look at a long term chart. A few of the above are at all time highs, which makes me somewhat leery. Granted, it is likely a high that will be just a blip over the next 30-40 years that I am going to be holding them, but still... The ones I posted up there are below all time highs, so their potential downside seems minimal. Their yields are all solid and, since I'm playing off a set amount of money for each stock, instead of a number of shares, that extra % or so seems like it'll mean quite a bit when compounded. Thanks for pointing out the shippers, guys. I hadn't looked at them. However, some of them haven't been around long, their prices are at all time highs (with little time on their chart), and the divs don't have much of a history or structure (odd times, amounts, etc.). Are those factors a consideration for you, or does it not worry you? Thank you for the great information, fellas. As always, it has been a good help."

Harry said: "[QUOTE=Airelon;59597]Sorta strange as I've seen this topic come up repeatedly lately at different forums, and at the same time, this is something I've been talking about in my [URL="http://investorandtrader.blogspot.com/"]blog[/URL] for like the last 3 days . . .[/QUOTE] Can;t ya just say it without spamming it?:sad010:"

Harry said: "[QUOTE=FirefighterB;59615]I agree with quite a few of these stocks "being in trouble," but isn't that kinda a good thing when you're talkin about a DRiP and LONG term investing? I mean, to me, these beaten down companies that might see more down are GREAT. I mean, I'm going to be making my base-stake, but then I want to add to it every month. If they go down over the next year or two, that just means I'm pickin more up for my money. Most of these also inspire me more when I look at a long term chart. A few of the above are at all time highs, which makes me somewhat leery. Granted, it is likely a high that will be just a blip over the next 30-40 years that I am going to be holding them, but still... The ones I posted up there are below all time highs, so their potential downside seems minimal. Their yields are all solid and, since I'm playing off a set amount of money for each stock, instead of a number of shares, that extra % or so seems like it'll mean quite a bit when compounded. Thanks for pointing out the shippers, guys. I hadn't looked at them. However, some of them haven't been around long, their prices are at all time highs (with little time on their chart), and the divs don't have much of a history or structure (odd times, amounts, etc.). Are those factors a consideration for you, or does it not worry you? Thank you for the great information, fellas. As always, it has been a good help.[/QUOTE] Be careful with the shippers. They get pumped alot merely because Warren Buffett plays them. He throws a lot of money and waits a long time. Our personal circumstances are certainly different. Also shippers bottom line is impacted by crude oil prices, albeit they enjoy international penetration. Ya can't look at yesterday's safe stocks as the safe stocks today. Consumer safety stocks like Kraft and Practer and Gamble are under pressure from increased costs of raw materials and higher fuel prices. To me MCD is the star until the next mad cow scare. :("

Airelon said: "[QUOTE=Harry;59634]Can;t ya just say it without spamming it?:sad010:[/QUOTE] I'm [B][I]HARDLY[/I][/B] here spamming it. If I was spamming it, I'd be in the shoutbox with it, hell, I could have worked it into 40 different threads that I've already contributed to, since many of them touched on topics that I've touched in the blog. It was a piece of synchronicity, as I commented. I thought it better to include the link, so I didn't get a reply (as done here) about "Hey Airelon, where's your blog" as has happened in other forums, and the whole thing gets siderailed. Which here we are."

Airelon said: "[QUOTE=FirefighterB;59615]I agree with quite a few of these stocks "being in trouble," but isn't that kinda a good thing when you're talkin about a DRiP and LONG term investing? I mean, to me, these beaten down companies that might see more down are GREAT. I mean, I'm going to be making my base-stake, but then I want to add to it every month. If they go down over the next year or two, that just means I'm pickin more up for my money. [/quote] Absolutely. The key here, is as long as you believe in the long term health in the company, then it is a good play. Some corporations, such as GM, may be in for a very long slide. And even then, there isn't a guarantee. Just look at Ford. I'm sitting on them from 6.55, we hit 9.00, and headed right back down. There is a lot of talk in certain circles that Ford is thinking of taking the company private. Which for stockholders is great. The buyback, I'll probably more than make out. But at the same time, for long term accumulation, there's just too much up in the air with them right now. But I agree with you, if the stocks are in trouble, that is the perfect time to buy. Heck, I've been praying for a recession, and hate the fact that it is fought against so much. Recessions are a gift to a long term investor. [quote]Thanks for pointing out the shippers, guys. I hadn't looked at them. However, some of them haven't been around long, their prices are at all time highs (with little time on their chart), and the divs don't have much of a history or structure (odd times, amounts, etc.). Are those factors a consideration for you, or does it not worry you?[/quote] No problem and you're welcome. :) Well, that's why I term them the 'sexy' dividend stocks. Just like that hot girlfriend that's 36D-24-36 - The shippers are rather sexy, but they have no long term 'staying power' behind them. Not a lot of history on which to base a decision. The ones I hold such as FRO and GMR are amongst the biggest shippers in the world, so that's why I've decided to play them. GMR has the great advantage of being heavily institutionally owned. But are the other factors worrisome? Yeup. Tis the 'sexy' play. Like any sexy girlfriend - shippers will always hold a lot of debt - tis the nature of the business. I dug in a bit before I bought in a few years ago. They are one of those plays that I made that I look back and just think: Rubber boots. I usually long term invest with much safer stocks. Those ones just happened to pay off. The question with the shippers - are the biggest shippers such as FRO and GMR going to be here in 10 years? I'll be more than happy with them at that point ... :)"

FirefighterB said: "Finally got my money transferred over to Zecco and I'm going to start drippin. I forgot to add PFE to the list above as another good div payer/DRP potential. I'm putting a list together of 8 large-cap stocks and I'm going to put the balance of the account into SDS, so if the market continues to go down, I'm not just losing money. AND, hell, SDS pays a dividend, too. I'll post up the final list when I have it nailed down."

Corey said: "How the hell do you delete a post?"

FirefighterB said: "[QUOTE=Corey;61020]How the hell do you delete a post?[/QUOTE] I don't know if you can delete a full post. To add to my question and qualifications for a DRP player, I'm looking for stocks that, over their history, are relatively low. If you look at the max time charts of the ones I listed, they are relatively low compared to their historical prices. Also, I'm looking for stocks that have a solid dividend history, as I'm looking to buy these stocks and hold them for 30-40+ years without having to change them around a bunch. While the shippers pay great dividends, they haven't been doing so for that long and I question that, when their bubble bursts, they will continue to pay such high dividends. Thanks in advance."