Looking for a good investment to start kids off? Consider buying a dividend stock and starting a DRP in a company whose product your kids know about and use - McDonalds, Wrigley and Coke are the classic ones, but there are many other options too.
You can find a DRP stock that doesn't charge a fee, the minimums are usually small (most in the $5 range), and have them watch how dividends are reinvested. This is a great way to introduce kids to stock investing and to learn first hand how this type of investing works.
1 comment:
I started a DRIP with Johnson Controls Inc. when I was about 12. I had some extra money and my father showed me how to invest it. Although I forgot about it for years (probably a good thing), I looked at it about 6 years later and saw that my money had more than doubled. It was very fun seeing the transaction history and how my dividends grew and grew and bought more stock.
I'd like to get some of my friends invested in a DRIP, but I was wondering where I can find these DRIPs with $5 minimums?
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