DRIP Investments in Utilities
Why don’t investors invest more in selective utility stocks? And DRIP them as well? I DRIPed D and in twenty years, 1988-2008, the return was eleven to one, about 13% annually compounded. They replace any bonds which are tricky!
Terry Says
Interesting — I wrote the preface to Chuck Carlson’s book on DRIP investing, which refers to dividend reinvestment plans. Here’s a link to his excellent website describing this strategy. Many people don’t think this strategy is “sexy” enough –compared to tech stocks. But like the tortoise and the hare, DRIP investors tend to come out ahead in the long run on average.
