First Time Investors

So you want to earn a little bit of money, but do not have a lot to invest in the market? Ok not problem! You can actually get your feet wet by investing in DRIPS (Dividend Reinvestment plans). DRIPS actually allow you to buy as little as a single share of a company, so it is well within everyone's budget.

Right now there are over 1,000 companies that offer DRIPS. The specifics on DRIPS vary just about as widely as the companies that they represent. For examples, some corporations will allow you to make purchases every single week if you like, while others only allow you to purchase once or twice per quarter. Make sure that you do your homework, and see where you fall in this.

Companies that do offer DRIPS are happy to help individual investors because it helps to keep their overhead down. The money that is earned for the company through DRIPS can then be reinvested into the company itself to further grow its earnings.

Why should you invest in DRIPS? Because they only require a very small investment! And when I mean small I mean small. Not $1,000, not $100, but many beginning at only $10! And these investments are will major corporations like AT&T, and Coca-Cola. Don't let the low buy in fool you though. Many wealthy individuals use DRIPS as a means of accumulating a well diversified portfolio. Pretty much everyone can benefit from DRIP investing. It does not matter if you are a Wall Street wonder or just starting out in the market.

Another great thing to consider other than the cost is that there are no commissions to be paid. You will be buying the stock directly from the individual company. This means that you do not need to pay for a broker, and all of his commission fees. You lower your cost of investing, and this allows you to yield a higher profit over time.

Now keep in mind that when you are investing in the DRIP market you want to think in terms of years not weeks or days. This is a stock that you are going to hold on to. If you are looking at a buy today sale tomorrow type of stock then this will not be for you. If you wanted something like that then you would probably be interested in the currencies market.

So why have you not heard of DRIPS before? Because there is no commission for brokers! They are not going to recommend that you invest in something unless if they are going to make a profit as well. A broker makes their money off of the money that you make. They are looking out for their best interest.

You owe it to yourself to invest in the future of yourself and your family. Run a google search on DRIPS, and get ready to get your feet wet.