Monday, February 02, 2009

Modifications to my Dividend Reinvestment Plans

I just stopped my automatic monthly investments in Exxon Mobil (XOM) and increased my position in Johnson & Johnson (JNJ) by 15%.

JNJ's trading price is significantly lower than my entry points over the last year or two and it is continuing to grow. It has a 3.2% dividend yield. Finally, many of its products are household staples that are continually being purchased as consumers downsize their discretionary spending.

I stopped my monthly investments in XOM in part because believe to some extent the Morningstar analysis. Morningstar does not show it to be a compelling buy at its current price point.

I started to buy Walmart shares (WMT) in my corresponding DRIP but noticed that there was a $1 auto-invest fee. Screw that. I don't want to pay fees for my DRIPs. I regret setting up my DRIP in Walmart.

Finally, I have active automatic investment plans in 3M (MMM) and Dow Chemical (DOW).


Marc said...
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Marc said...

So where do you set up your DRIPs for XOM, JNJ, MMM and DOW?

Finance Junkie said...

Recommend first going to Now type in the name or ticker symbol of the stock you're interested. Look at the transfer agent name listed. Go to the transfer agent names website and see if you can set up your DRIP at no significant cost via the transfer agent. If not, buy the initial share via and let them handle the initial set up and transfer of stock to the final "transfer agent."

Clear as mud? If you have other questions i'd be happy to answer via here.