Wake
Easygoing Conservative
- Jun 11, 2013
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- #1
I'm 26, and use Scottrade to invest. It'd be accurate to say I'm an amateur investor.
Currently the only stock I own is GRHpC, and I've been wary since then. That stock is a preferred stock, giving dividends, and the overall value increased quite a bit since half a year ago. That's just being fortunate; there's a reason I haven't bought up more stocks. I fear I'd lose money on bad investments.
So, I'm thinking. It's tough trying to think of stable investments. What I'd like to do is start a dividend reinvestment program utilizing preferred stocks that pay high monthly dividends. The dividends I would have received are instead automatically used to buy even more of that same stock. That way my stocks will keep buying more of themselves, and then, when it's switched back to normal dividend payout, the reward will be greater. The risk in doing that, however, is constantly buying more stocks automatically in a company that eventually goes bankrupt.
Since I'm young, and am considering the odds, should I instead buy 5 preferred stocks at $300 each, and wrap each one into a DRIP? That way even if one or two go belly up the others would succeed. My knowledge in investing is little. More than some reading this not only have more knowledge, but valuable experience, too.
What do you reckon would be wise here?
Currently the only stock I own is GRHpC, and I've been wary since then. That stock is a preferred stock, giving dividends, and the overall value increased quite a bit since half a year ago. That's just being fortunate; there's a reason I haven't bought up more stocks. I fear I'd lose money on bad investments.
So, I'm thinking. It's tough trying to think of stable investments. What I'd like to do is start a dividend reinvestment program utilizing preferred stocks that pay high monthly dividends. The dividends I would have received are instead automatically used to buy even more of that same stock. That way my stocks will keep buying more of themselves, and then, when it's switched back to normal dividend payout, the reward will be greater. The risk in doing that, however, is constantly buying more stocks automatically in a company that eventually goes bankrupt.
Since I'm young, and am considering the odds, should I instead buy 5 preferred stocks at $300 each, and wrap each one into a DRIP? That way even if one or two go belly up the others would succeed. My knowledge in investing is little. More than some reading this not only have more knowledge, but valuable experience, too.
What do you reckon would be wise here?
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