A Great Stock For Dividend Reinvestment

RL OH

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If you are a person in their twenties or thirties and deal with a broker who offers dividend reinvestment, I have a great investment hint for you. Buy several hundred shares of GAB(stock symbol) and let the stock use it's dividends to buy more. Some brokerage firms do not offer dividend reinvestment, but find one that does and you will be amazed at how your number of shares will grow in three or four years. Buy now and hold it for twenty years or until retirement and see the profit.
 
I'm 25 and I have never invested in the stock market. My question to you is what makes this one so special. Out of all the stocks out there why this one?
Thanks,
Frank
 
Frank, I have owned this stock since 1991 and it pays a 10% dividend. Of course the the 10% is based on the price of the stock. When the stock is lower, the dividend is 10% of the lower price. If the stock price is higher the 10% dividend generates a higher dividend. It is not a stock to get rich on, but one that over 10 to 15 years the dividend will grow the number of shares you own fast and steady. A friend bought 1000 shares and set up dividend reinvestment and in about four years she had over 1500 shares. It is not expensive to buy and just buy it and forget about it. Many of my friend buy a 100 shares for their children and grand children and let it grow. I use to buy savings bonds, but they are all but worthless. As with any stock, there is a risk of losing your money, but in twenty years, I have done well with gab. R.L.
 
Stocks are much like anything else you would buy Tank. You wouldn't buy a car unless you had done some research on it. Same principle applies to researching a stock, look at its historical charts, its Underwriter, IR firm, accouting firm, Law firm, anything you can get your eyes on to educate yourself about them. Then you must decide how much you want to invest and as our topic host RL stated "remember the risk". If you decide to make a large investment in the market you might consider finding a Brokerage firm to assist you, as with everything else Brokers have fees, be sure to discuss them before signing him on. If you decide you wish to invest short term and maybe into the OTC or pink slips, you might try an online service offering one flat rate per trade.
 
A little bit on the risky side but right now I am in "CIM" for a good dividend play. Check it out if you want.
 
jerseyben said:
A little bit on the risky side but right now I am in "CIM" for a good dividend play. Check it out if you want.

Interesting. Its a REIT (Real Estate Investment Trust) that has mirrored home pricing (crashed with the crash and hasn't come back much). What's amazing, I find, is its able to pay a 16.6% dividend. So if you think real estate prices will rebound it a good place to be.

GAB is an equity trust run by Mario Gabelli. As far as I can tell he is the standard as far as fund managers go. Top notch and safe as can be. He has several funds and also runs GOLDX, a mutual fund of gold mining stocks.
 

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