Fool DRIP Portfolio
DRIP Investing, real dollars, fundamental stock analysis and saucy banter.
Follow me on Twitter: @BryanHinmon.
What is FDP?
Fool DRIP Port Today
Your fearless leaders are far from Scrooge McDuck-wealthy, but our plan is to invest $500 in five wonderful, DRIP-offering companies, for an initial investment of $2,500. As the portfolio ages, we plan on adding to our five holdings only when prudent and when we have some cash to spare.
We will write articles on Fool.com, post them here and tweet their publication letting you know our thoughts on company developments and our thoughts on the FDP. The numbers? You can find them at the bottom of the page -- we are completely transparent and will let you know what we are doing before we actually do it.
My Foolish colleague and I are putting our own hard-earned dollars at stake here because we believe in the DRIP philosophy:
- Invest in medium to large enduring businesses that have the discipline to consistently return cash to shareholders.
- Continuously develop knowledge about your investment over time.
- Invest regularly with a long-term mind-set.
Our Rules for FDP
- Companies must offer direct share purchase programs (DSPs) as well as direct reinvestment programs (DRIPs)
- Initial DSP requirement can't exceed $250
- We must be comfortable owning the shares for the long-term
Fool DRIP Port History
Thirteen years ago, long before the iPhone or Twitter, in a kingdom far, far away, our Foolish colleague Jeff Fischer and former Fool Randy Befumo introduced a DRIP Portfolio on fool.com.
Their reasons for starting the portfolio were simple:
- Most Americans have more credit card debt than they do savings.
- Most Americans want to change that situation and start investing.
So over the next five and a half years, the Fools slowly added modest sums to a group of five stocks available via dividend reinvestment plans (DRIPs).
When the original Fool DRIP Portfolio closed in 2003, it was up about 1% even though the S&P 500 lost 12% over the same period.
Fool DRIP Portfolio Articles
- DRIP Portfolio Winner: Becton, Dickinson, October 21, 2010
- DRIP Portfolio Candidate: Becton, Dickinson, October 7, 2010
- DRIP Portfolio Candidate: Walgreen, October 7, 2010
- DRIP Portfolio Winner: Chevron, September 9, 2010
- DRIP Portfolio Candidate: Lubrizol, August 30, 2010
- DRIP Portfolio Candidate: Chevron, August 30, 2010
- DRIP Portfolio Candidate: Badger Meter, August 11, 2010
- DRIP Portfolio Candidate: Caterpillar, August 11, 2010
- DRIP Candidate Winner: Microsoft, August 2, 2010
- DRIP Portfolio Candidate: Microsoft, July 26, 2010
- DRIP Portfolio Candidate: IBM, July 26, 2010
- How We'll Build Our DRIP Portfolio, July 19, 2010
- The Return of the DRIP Portfolio, July 15, 2010
Post your questions on the Motley Fool discussion boards:
Who are these Dudes?
Todd Wenning (TMFPhila) is an analyst for Motley Fool Pro and has been using CAPS to find investment ideas for Fool.com readers since the community launched in 2006. His CAPS portfolio has been ranked in the top 1% of the CAPS universe. After graduating with honors in history and economics from Saint Joseph's University, Todd began his investing career with The Vanguard Group, where he was a licensed equity trader. He also worked as a portfolio analyst for SunTrust Asset Management in Washington, D.C., where he helped manage high net worth portfolios. Working with wealthy clients taught him the value of dividend-paying stocks, that patience is a critical element to successful investing, and that yes, one can own too many vacation homes. Born and raised in Cincinnati, Todd empathizes with fans of terrible professional sports teams. In his downtime, Todd enjoys early '90s alternative rock, spending time with his wife, and taking his chocolate lab swimming
Bryan Hinmon, CFA
Bryan Hinmon (TMF42) is an analyst for Motley Fool Pro has been a loyal member of the Fool community for more than a decade. After cutting his teeth managing some serious real money for students and faculty at Stetson University, where he co-founded the CMH Investment Board, Bryan moved to sunny Naples, Florida, to work as an investment analyst for LUMA Capital. At LUMA, he helped manage the portfolios of high-net-worth individuals and launch a hedge fund focusing on large-cap equities with a covered call overlay — in a similar vein as Pro's strategy, but not nearly as brilliant. Hungry for more, Bryan moved to Boston to open and co-manage Bulwark Capital Management, a hedge fund with a broad purview. Small stuff, ugly stuff, and option income were par for the course at Bulwark. As part of the Pro team, Bryan enjoys being surrounded by smart and fascinating people at Fool HQ, but as a new D.C. resident, he wants Dan Snyder and Mike Shanahan to know that he will forever stay loyal to the Tampa Bay Buccaneers. Converting his wife, a die-hard New England Patriots fan, will prove even more futile — so don't even try, D.C. Bryan is a CFA charterholder and member of the Boston Security Analyst Society.
FDP Real Money Portfolio
|Company||Shares Held||Average Price Paid||10/21/2010 Price||Gain/(Loss)|
|Microsoft (Nasdaq: MSFT)||20.16||$24.60||$27.02||+9.8%|
|Chevron (NYSE: CVX)||2.89||$83.67||$84.89||+1.5%|
|Becton, Dickinson (NYSE: BDX)||3.20||$78.19||$81.53||+4.3%|
More to come...