Ask Terry Questions DRIP Investments in Utilities

DRIP Investments in Utilities

By Terry Savage on August 16, 2019 | Investments

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.

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