Procter & Gamble Offers 10% Dividend

Time to invest in PG!

Procter and Gamble is trading near 5 year lows and just announced a 10% Dividend in its stock.

How to invest in Procter & Gamble Dividend Reinvestment

Shareholder Investment Program

New Account Application

Automatic Investment

Enrollment Fee - None
• PG Dividend Reinvestment Fee - None
• Optional Cash Investment Fee (via Direct Debit) - None
• Maximum Optional Cash Investment - $6,000,000 (one time and annual)
• Minimum Initial Investment - $250
• Minimum Optional Cash Investment - $50
• Sales Fee - $15.00 ($7.50 if requested online), plus $0.12 per share
*************************************

Procter & Gamble Co. said late Tuesday that it will raise its quarterly dividend on its stock by 10 percent, to 44 cents per share from 40 cents.

The increase refers to P&G common stock, and series A and series B ESOP convertible class A preferred stock. It is payable on or after May 15 to shareholders of record as of April 24, according to a news release.


P&G said in the release that it has been paying dividends since 1890, and the increase is the 53rd the company has declared.

Cincinnati-based Procter & Gamble (NYSE: PG) is a manufacturer and marketer of consumer products and pharmaceuticals.

$1000 turns into $18679 in 30 years

How Dividedend Reinvesting Works:

Take $1000 and invest it in a company that pays dividends each year and is typically a safe harbour ivestment. Say Kraft (KFT), Proctor and Gamble (PG), ExxonMobil (XOM) or 3M (MMM).

Below is a consevative estimate of an inital $1000 investment with a 5% dividend return and a 5% average yearly return/appreciation.

Even if you never add additional money and "set it and forget it" after 30 years, your $1000 investment becomes over $18K!

See the results below:

Year Investment Worth
1 $1,000
2 $1,103
3 $1,216
4 $1,341
5 $1,478
6 $1,629
7 $1,796
8 $1,980
9 $2,183
10 $2,407
11 $2,654
12 $2,926
13 $3,226
14 $3,557
15 $3,922
16 $4,324
17 $4,767
18 $5,256
19 $5,795
20 $6,389
21 $7,044
22 $7,766
23 $8,562
24 $9,440
25 $10,408
26 $11,475
27 $12,651
28 $13,948
29 $15,378
30 $16,954
31 $18,692

3M MMM Sharehoder Incentive Perk

3M (MMM aka Minnesota Mining and Manufacturing) annually during Christmas time mails out a box of free samples to their shareholders. The following is 3M's proactive policy of their employees: "Giving people room" to innovate is a 3M tradition, exemplified by the "15% rule" which encourages people to spend 15 percent of their time on projects of their own choosing and initiative. 3M releases on average 500 new products per year and produces over 60,000 products. It's premiere product, the Post-IT note is well known and beloved across the world helping the every day student study to the corporate world of document management. 3M is nearing it's 52 week lows which means a great time to buy for the beginning and long term investor to purchase this stock on the cheap.

Sysco

Sysco is nearing five year lows, which makes the stock extra affordable and good buy especially with it's annual dividend yield of 2.9%.

Below is the information on how to participate in the Sysco DRIP Stock Purchase program.

Stock Purchase Background Information
Automatic Deduction Form
Enrollment Application Form

Min. purchase for initial enrollment: 1 Share
Min. purchase for enrolled participants: $100.00
Max. purchase for enrolled participants: $15,000.00 per year
When are optional cash investments made? 2 business days prior to an investment date not usable
Sale of Plan Shares: Permitted
Discount on Optional Cash: No Discount
Discount on Reinvested Dividends: No Discount
SafeKeeping: Permitted
Monthly Direct Debit: Permitted
Certificate Withdrawal From Account: Permitted
Dividend Payable: Dividends are paid in Jan, Apr, Jul, Oct
Share Sale Fee: $10 and 5 cents per share broker commission

Interesting Forbes Article About DRIPs

http://www.forbes.com/2006/09/29/yahoo-intel-drip-pf-ii-in_jd_0929investingideas_inl.html

Where to buy DRIPs

There are various ways you can buy DRIPs.

1) http://www.computershare.com
2) http://www.shareowneronline.com/
3) http://www.sharebuilder.com/
4) Directly through the company itself (my requesting for a prospectus to be mailed to you).

Sharebuilder Pricing Programs:

With Sharebuilder, one is able to easily invest in DRIPs each month through their automatic investment plans. Shareebuilder offers very little research tools about DRIP performance.

$4 per automatic investment; $15.95 real time trades
Automatic investments are recurring or one-time purchases of stock on Tuesdays

Sharebuilders offers a variety of stocks to choose from:
https://www.sharebuilder.com/sharebuilder/Research/Tools/SBList.aspx

Some DRIPs are available directly through an affiliated company such as ComputerShare or ShareOwnerOnline. Like Sharebuilder, ComputerShare and ShareownerOnline offer DRIP investing through automatic debit programs of any checking account. Each DRIP company lists minimum investments, fees (for purchases and/or sales), and investment plan options.

I like both ComputerShare and ShareOwnerOnline for its detailed transaction history to keep track of annual dividends. The accuracy of annual dividends are especially important to the DRIP investor. Dividends are company distributions of revenue to its shareholders. Dividends are levied at a person’s individual tax rate annually.

The following is a list of ComputerShare DRIPs:
https://www-us.computershare.com/investor/plans/planslist.asp?stype=drip

The following is a list of ShareOwnerOnline Stocks

ALLETE, INC.
ALLSTATE CORPORATION
BLACK HILLS CORPORATION
BUILDING MATERIALS HOLDING CORPORATION
DARDEN RESTAURANTS, INC.
DELTA AIR LINES, INC.
EDISON INTERNATIONAL
ELI LILLY AND COMPANY
IDACORP, INC.
JANUS CAPITAL GROUP INC.
JOHN H. HARLAND COMPANY
JOHNSON CONTROLS INC
KELLOGG COMPANY
LONGS DRUG STORES CORPORATION
MASSEY ENERGY COMPANY
MCCORMICK & COMPANY, INC
MDU RESOURCES GROUP, INC.
MEDTRONIC, INC.
MERCK & CO INC
NOBLE ENERGY, INC.
PENNSYLVANIA REAL ESTATE INV TRUST
QUANEX CORPORATION
QUESTAR CORPORATION
RADIOSHACK CORPORATION
ROCKWELL COLLINS, INC.
SUPERVALU INC.
WELLS FARGO & COMPANY

Drip Books

ISBN: 0071441158



My Review: A great intro book to dividend investing.

MakeAReview.com

ISBN: 0071369937



My Review: Another Excellent Book about DRIP Investing.

MakeAReview.com

DRIPs are No Load

DRIP investing is very alluring because they usually require "no load". No load equates to no/minimal fees direct stock investing with a company instead of having to purchase through a broker. You do not have to be an existing shareholder to start purchasing from a company offering a DRIP.

An alternative to DRIP investing is buying stocks through brokerage firms that charge little fees. Sogo Invest is one such company that interestingly only charges $1 per trade for 90 days. Afterwards, there is a monthly subscription fee of $10 per month and $2 per trade for their gold plan.

National Association of Investors Corporation's "Low Cost Investment Plan."

The National Association of Investors Corporation (NAIC) offers a "Low Cost Investment Plan" program where a person can start their own DRIP investing by buying a share of stock from a list of 150+ companies.

There is a one-time $7 setup fee in addition to the $39 annual membership dues with a free subscription to their Better Investing newsletter.

More NAIC information can be obtained at:

P.O. Box 220, Royal Oak MI, 48068;
(810) 583-6242;
http://www.betterinvesting.org/stocks/resources/

The following information was obtained from their website:

Here's How to Get Started:

Complete the Enrollment Form including stock registration information.

Indicate which share of stock to buy from the Low Cost Investment Plan Participating Companies list.

Mail application and check to BetterInvesting. Refer to application for mailing information.

BetterInvesting will provide you legal documents that will need to be completed, signed and returned for each stock purchase.

Once the stocks are purchased you will receive a confirmation letter from BetterInvesting explaining how to make future purchases.

Low Cost Investment Plan enrollment form (PDF)

Youth Low Cost Investment Plan enrollment form. (PDF)

Low Cost Investment Plan Participating Companies

Most Popular Dividend Stocks for Under $20

Below is a list of Dividend Stocks for Under $20 A Share

Ticker|Company Name|Last Trade|Dividend
AAV | ADVANTAGE ENERGY |14.25|2.16
ABB | ABB LTD |15.01|0.08
ABY | ABITIBI CONSL INC |2.52|0.09
AFR | AMERICAN FIN RLTY |11.12|0.76
ALA | ALCATEL |12.7|0.17
AMAT | APPLIED MATERIALS |17.26|0.2
ARM | ARVINMERITOR INC |15.46|0.4
AUO | AU OPTRONICS CP A |13.45|0.07
AXL | AMER AXLE&MFG HLD |19.17|0.6
BLC | BELO CORP |17.5|0.5
BPOP | POPULAR INC |18|0.64
BVF | BIOVAIL CORP |15.84|0.5
CE | CELANESE CORPORAT |19.79|0.16
CEM | CHEMTURA CORP |9.36|0.2
CKR | CKE RESTAURANTS |19.41|0.16
CNP | CENTERPOINT ENERG |15.41|0.6
CQB | CHIQUITA BRANDS N |13.48|0.4
CTB | COOPER TIRE RUBBE |10.78|0.42
CZN | CITIZEN COMM CO |14.78|1
DG | DOLLAR GENERAL CP |13.82|0.2
DLM | DEL MONTE FOODS C |10.84|0.16
DT | DEUTSCHE TELE AG |17.16|0.91
ECR | ECC CAP. CORP. |1.28|0.72
EP | EL PASO CORPORATI |13.82|0.16
ERS | EMPIRE RES INC |15.54|0.2
F | FORD MOTOR CO |8.29|0.2
FBN | FURNITURE BRNDS I |18.81|0.64
FBR | FRIEDMAN BILLINGS |7.63|0.32
FINL | FINISH LINE CL A |12.67|0.1
FMT | FREMONT GENERAL C |14.5|0.44
FNFG | FIRST NIAGARA FIN |14.23|0.48
GFI | GOLD FIELDS LTD A |16.73|0.31
GGB | GERDAU SA ADS |15.05|0.64
GNTX | GENTEX CP |15.78|0.38
HCBK | HUDSON CITY BNCP |13.57|0.3
HMA | HLTH MGMT ASSOC A |19.99|0.24
HRP | HRPT PROPERTIES |11.64|0.84
IAG | IAMGOLD CORPORATI |8.47|0.06
IKN | IKON OFFICE SOLUT |14.71|0.16
IMH | IMPAC MTG HLDGS I |9.33|1
KNX | KNIGHT TRANS INC |18.25|0.08
MFA | MFA MTG INVTS INC |7.67|0.2
MRH | MONTPELIER RE HLD |18.26|0.3
NLY | ANNALY CAPITAL MA |13.05|0.56
NOK | NOKIA CP ADS |19.7|0.38
NYB | NEW YORK CMMTY BN |16.23|1
OI | OWENS ILLINOIS |16.3|0.59
OLN | OLIN CP |16.76|0.8
PBY | PEP BOYS MAN MOE |14.19|0.27
PIR | PIER ONE INC |7.05|0.4
PVX | PROVIDENT ENERGY |12.06|1.28
RDA | READERS DIGEST |14.38|0.4
RSH | RADIOSHACK CORP |17.67|0.25
S | SPRINT NXTEL CP |19.17|0.1
SAX | SAXON CAPITAL INC |14.18|2
SCHW | CHARLES SCHWAB IN |17.81|0.2
SCI | SERVICE CP INTL |9.18|0.1
SCT | SCOTTISH RE GRP L |11.25|0.2
SLE | SARA LEE CP |17.07|0.4
STM | STMICROELECTRONIC |16.8|0.12
SVM | SERVICEMASTER CO |11.23|0.48
TE | TECO ENERGY INC |16.49|0.76
TLM | TALISMAN ENERGY I |16.83|0.14
TNE | TELE NORTE LEST |14.75|0.71
TOA | TECHNICAL OLYMPIC |11.04|0.06
TSM | TAIWAN SEMICOND A |9.7|0.31
TSN | TYSON FOODS INC C |14.33|0.16
TWX | TIME WARNER INC |19.91|0.22
UCBH | UCBH HOLDINGS INC |17.31|0.12
UMC | UNITED MICROELECT |2.96|0.05
VRX | VALEANT PHARMA IN |19.16|0.31
VVR | VAN KAMPEN SR INC |8.47|0.74
WERN | WERNER ENTERPRISE |18.22|0.18
WIN | WINDSTREAM CORP |13.85|0.82
WON | WESTWOOD ONE INC |7.95|0.4
WOR | WORTHINGTON INDS |17.36|0.68

An Introduction to DRIPs

Dividend ReInvestment Plans (DRIPs) are a way for people to own dividend paying stocks directly from a company. Instead of dividends being paid out in cash, the money one receives from dividends is reinvested into buying more shares of stock. DRIPs are a very easy way to invest in the stock market, because many companies do not require much capital to open a DRIP account. You can buy stock directly from DRIP companies for as little as $25 per month.

This web blog is designed to give people an easy awareness to DRIP investing. In addition, in the next few months, I hope to give you all updates on various DRIP stocks and an experiment of DRIP accounts in action. This blog is designed for the everyday person in showing that it does not take a financial analyst or require thousands of dollars to invest and gain steady returns in the stock market. Although there is a certain amount of risk with any investment, I hope to demonstrate with this blog that DRIPs are an excellent investment option to a beginner or a nice additional balance to an already existing portfolio.

Sincerely,
The DRIP Investor

Dogs of the Dow

A novel idea introduced by Michael O'Higgins is to buy from the following blue chip list (Dow Jones Industrial Average Stocks with the lowest price/earnings ratio, highest dividend yield, and lowest price) to be held for a year. After a year has passed, check the list again and sell the stocks that are not considered a "Dog". The premise is to invest in stable blue chip companies that have a higher potential to increase their share price. It is the equivalent to bargain basement shopping of stocks. For the past several years, this strategy has beaten the standard market gain with approximately 18% annual returns.

Dogs of the Dow as of 06/19/2007


Symbol   Company Name  Last Price  Current Dividend Yield  Yr P/E
PFE Pfizer Inc. 26.21 4.38 12.2
C Citigroup Inc. 54.26 4 12
MO ALTRIA GROUP 69.52 3.91 16.4
VZ Verizon Communications Inc. 43.07 3.77 18
T AT&T Inc. 40.24 3.53 14.8
JPM JPMorgan Chase & Co. 50.85 3.01 11.2
MRK MERCK AND CO INC 50.32 3 17.3
GE GENERAL ELECTRIC 39.29 2.94 17.2
GM GENERAL MOTORS 34.52 2.89 10.8
DD DU PONT DE NEMOURS 52.21 2.88 16.3
JNJ Johnson & Johnson 62.42 2.65 15.4
KO The Coca-Cola Company 51.39 2.64 20
HD The Home Depot, Inc. 38.27 2.37 14.6
PG PROCTER GAMBLE 61.82 2.24 20.4
MMM 3M Company 87.82 2.19 18.2
MCD McDonald's Corporation 52.48 1.92 19.3
INTC Intel Corporation 24.1 1.86 22.5
CAT Caterpillar Inc. 82.49 1.78 14.7
WMT Wal-Mart Stores, Inc. 48.81 1.78 15.6
UTX United Technologies Corporation 71.72 1.78 17.2
HON Honeywell International Inc. 57.87 1.7 18.7
AA Alcoa Inc. 41.58 1.64 12.7
XOM Exxon Mobil Corporation 85.84 1.63 12.9
IBM International Business Machines Corp. 106.5 1.52 15.4
BA The Boeing Company 96.92 1.43 19.9
MSFT Microsoft Corporation 30.46 1.31 20.5
AIG AIG-AMERIC.INT.GRP 72.61 1.1 11.1
AXP American Express Company 63.15 0.94 18.2
DIS The Walt Disney Company 34.76 0.9 18.4
HPQ Hewlett-Packard Company 45.9 0.7 16.6

Mellon Investor ServiceDirect Stock Purchase Plans

Found another website similar to Computershare that allows investors to purchase stock directly from the company.

Mellon Investor ServiceDirect

There are some various very well known companies such as:

Company Name Minimum Electronic? Plan Type

ANADARKO PETROLEUM CORPORATION $1,000 NO DSPP
ANHEUSER-BUSCH COMPANIES, INC. $25 NO DRIP
AVIS BUDGET GROUP INC. $250 NO DSPP
BAKER HUGHES INCORPORATED $0 NO DRIP
BAUSCH & LOMB INC. $0 NO DRIP
BORG-WARNER AUTOMOTIVE, INC. $500 NO DSPP
BRISTOL-MYERS SQUIBB COMPANY $0 NO DRIP
CASH AMERICA INTERNATIONAL, INC. $250 NO DSPP
CATERPILLAR INC. $250 NO DSPP
CHEVRON CORPORATION $250 NO DSPP
CIGNA CORPORATION $250 NO DSPP
CONOCOPHILLIPS $250 NO DSPP
COSTCO WHOLESALE CORPORATION $250 YES DSPP
CREDIT SUISSE GROUP $250 NO DSPP
DEUTSCHE TELEKOM AG. $250 NO DSPP
H & R BLOCK, INC. $0 NO DRIP
H. J. HEINZ COMPANY $250 NO DSPP
J.C. PENNEY COMPANY INC $250 NO DSPP
JPMORGAN CHASE & CO. $250 NO DSPP
MICROSOFT CORPORATION $1,000 NO DSPP
MOTOROLA , INC. $500 NO DSPP
NATIONWIDE FINANCIAL SERVICES, INC. $500 NO DSPP
NCR CORPORATION $250 NO DSPP
OFFICE DEPOT, INC $250 NO DSPP
PERKINELMER $250 NO DSPP
PG&E CORPORATION $250 NO DSPP
PIER 1 IMPORTS, INC. $500 NO DSPP
REUTERS GROUP PLC $250 NO DSPP
SAP AG $250 NO DSPP
SARA LEE CORPORATION $250 NO DSPP
STAPLES INC $250 NO DSPP
TARGET CORPORATION $500 NO DSPP
THE ESTEE LAUDER COMPANIES INC. $250 NO DSPP
TIFFANY & CO. $250 NO DSPP
TYCO INTERNATIONAL LTD $2,500 NO DSPP
U.S. BANCORP $250 NO DSPP
WASHINGTON MUTUAL, INC. $500 NO DSPP
WASTE MANAGEMENT, INC. $500 NO DSPP

Coke (KO)

Coke is American as apple pie. The cold refreshing drink has been consumed by millions worldwide. With an incredibly low beta (a measure of risk of investment) of 0.49, Coke has been a good stock to invest for the risk adverse in looking for a stable company to invest in over the years. Even Warren Buffet, the infamous and well known investor thought so in the 1980s buying up to 7% of the company.

New Owner Guide

Below is the contact information to invest directly in Coke:

CONTACT
The Coca-Cola Company
c/o Computershare
P. O. Box 43070
Providence, RI 02940-3070
U.S. Toll-free (888) COKE-SHR (265-3747) or (781) 575-2725
For hearing impaired: (800) 490-1493
E-mail: coca-cola@computershare.com
Internet: www.computershare.com

ExxonMobil (XOM)

With its "Put a Tiger in Your Tank" mantra, Exxon has been paying out consistent dividends. Currently this year's levels have been approximately 1.64%.

Although near its 52 week high of $78.52, shareholders are hopeful the stock will climb to $80 per share before the end of the year.
Exxon Calculator


For all inquiries, call:

ExxonMobil Shareholder Services
1-800-252-1800 (within the U.S. and Canada)
1-781-575-2058 (outside the U.S. and Canada)

For stock transfer, stock purchase, dividend reinvestment, dividend payment, direct deposit of dividends, address changes and other inquiries, write:

ExxonMobil Shareholder Services
c/o Computershare
P.O. Box 43008
Providence, RI 02940-3008

For account access, general transfer instructions, dividend reinvestment information, and frequently asked questions and answers, go to: http://computershare.com/exxonmobil.


Financial Highlights:
Sales 386.95 Bil
Income 39.96 Bil
Net Profit Margin 10.33%
Return on Equity 35.60%
Debt/Equity Ratio 0.07
Revenue/Share 63.78
Earnings/Share 6.59
Book Value/Share 19.99
Dividend Rate 1.28
Payout Ratio 19.00%


Investor Information

$1 a Day Millionaire

Yes, you too can become a millionaire on a dollar a day.

Consider saving a $1 a day ($365 days a year) with a 10% average rate of return in the stock market.

Consider an American that works starting the age of 16 until the age of 75.

After this time period of 59 years, saving $1 per day will accumulate to $1,107,708.

You can confirm these results with the following:
Investment Calculator

3M (MMM) Stock Turn $100 into $1,340.22

With consistent dividends since the 1916s, 3M, the maker of the Post-IT note has been a great investment buy. 3M pays quarterly dividends on 3M common stock usually by mid March, June, September and December. Additionally, each 3M shareholder receives a perk package every year regardless if you own 1 share or 1000 shares.

Check it out for yourself:
3M Stock Calculator

More information about the 3M DRIP can be found here

FEE DISCLOSURE TABLE:
Certificate Deposit Company paid
Certificate Issuance Company paid
Service fee Company paid
Investment Commission Company paid
Sale Fees Service fee $10.00 per transaction
Fee for Returned Checks orRejected Automated Bank Withdrawals $25.00 per item
Prior Year Duplicate Statements $10.00 per year

Home Depot (HD)

The largest home improvement retailer Home Depot is another excellent example of a DRIP stock.

The minimum initial investment is $500.

The service charges are:

For first-time investors - $5.00
For subsequent purchases - 5% up to maximum of $2.50
Sales of shares: $10.00

Features at No Charge
Through DSPP, you receive a stock safekeeping service and the ability to make transfers or gifts of Company stock—all at no charge. The recipient of the transfer or gift will have an account opened in their name and will enjoy full program benefits.

This is a really nice feature if you would like to give Home Depot stock to friends and family.

Home Depot's prospectus can be reviewed here:
Prospectus

The Power of Drip Investing

I found this neat tool showing the power of DRIP investing.

http://www.shareholder.com/clx/calculator.cfm

For example, $10000 invested in Clorox Company (KLX) 1996 would be worth $ 44,128.25 today (which equates to a 341.28% return on investment).

A hundred dollars invested in the Chlorox Company (KLX) in 1986 originally only buying two shares would be worth today 30.73 shares at 63.76 per share totaling $1,959.50 which equals to a 1,859.50% return on investment.

Kellogg (K) DRIP

Breakfast is the most important meal of the day. Kellogg is a long time industry stalwart in cereals (such as Corn Flakes, Special K, Frosted Flakes, Apple Jacks, Honey Smacks, etc), and other breakfast product brands such as Eggo, Pop Tarts, etc.

Kellogg is a good choice as a DRIP stock, because of its long term history of performance, and strong brand name recognition.

Below is where you can find DRIP information from Kellogg:
http://investor.kelloggs.com/drip.cfm?navSection=Services

Historical Dividends
http://investor.kelloggs.com/div-history.cfm?navSection=Services&navSubSection=Div

Below is Kellogg's Past 5 Year Stock Performance:

AFLAC (AFL)

This past Open Enrollment, I decided to also sign up for Short Term disability insurance.

To my surprise in researching more about the company, I found out that AFLAC (AFL) also offers its own DRIP program.

More information can be obtained here:
http://www.aflac.com/us/en/investors/dripstockpurchase.aspx

AFLAC prospectus:
http://www.aflac.com/us/en/docs/AFLStockPlanProspectus.pdf

AFLAC DRIP Application:
http://www.aflac.com/us/en/docs/AFLStockPlanEnrollmentForm.pdf

10 Excellent DRIP Candidate Stocks

Walt Disney (DIS)
Yahoo (YHOO)
Wrigley (WWY)
Liz Claiborne (LIZ)
Intel (INTC)
Caterpiller (CAT)
Harley Davidson (HOG)
McDonald (MCD)
Harrah Entertainment (HET)
CVS (CVS)