7 Best Dividend Stocks to DRIP

Monty Spivak submits: Is it worth enrolling your shares in a Dividend Reinvestment Plan (DRIP)? Experts in the marketplace appear to strongly endorse these plans. After various banking, sovereign, and other financial crises, the widespread endorsement may cause one to worry. Many websites are dedicated to the topic, or have articles and blogs which propose that the average investor will benefit from DRIPs.

By Vatalyst: In view of the stock market's performance in the recent past, investors are seeking to invest in stocks with better dividend yields. I have highlighted five companies below which have an impressive dividend payment history and dividend reinvestment plan.

By Vatalyst: Dividend Reinvestment Plans (DRIPs) are becoming quite popular amongst income investors. These plans allow the flexibility to existing shareholders to reinvest their dividends to purchase more shares in whole or part. With many companies offering DRIPs to investors without any commission fees, it becomes difficult to pick the best ones. Here are some of the stocks that have promising financial results and a strong dividend history backing their DRIPs:

By Vatalyst: One problem that has long bedeviled investors is that of timing. Many hundreds of companies offer investors DRIP plans, or dividend reinvestment programs. Instead of getting typically small quarterly dividend checks, DRIP participants choose to have those dividends reinvested in more stock. These plans also typically offer the opportunity to purchase more shares directly from the company, without commissions.

By Vatalyst: A dividend reinvestment plan, or DRIP, is the ultimate tool for long term, dollar cost averaging investing. DRIP plans are commonplace, so picking some of the best ones is a bit of a challenge. The biggest risk to a DRIP investor is a drop in dividends. So my number one priority is overall financial health. Second, a DRIP works best when dividends are raised consistently. So, I look for companies with long term dividend growth consistency and with room or likelihood for further advances.

By Ry Frank:Dividend reinvestment program (DRIP) plans are very popular amongst long-term investors who desire to increase their stake in a particular security primarily because of price appreciation and compounding. DRIPs allow investors to reinvest their dividends to buy more stock without incurring brokerage fees.

Jeffrey Gall submits:A U.S. Dividend Contender stock is a stock which has increased its dividend payout between 10 and 24 consecutive years. David Fish provides his list of U.S. Dividend Contenders here. This list is a useful resource for stocks offering dividend reinvestment plans (i.e. DRIPs), and for those investors who automatically reinvest their dividends.

David Fish submits: Once the province of stodgy utilities and local banks, DRIPs (or Dividend Reinvestment Plans, also known as Direct Investment Plans) have come a long way in helping small investors establish a widely diversified portfolio. The DRIP “universe” now stretches into almost every industry, including high-tech, biopharma, energy, mining, and media. And a company doesn't necessarily have to pay a dividend to establish a direct investment plan, although most do.