Time to dip into DRIPs?

I’ve never used Dividend ReInvestment Plans (DRIPs) – programs usually run by publicly traded companies for their shareholders that inexpensively and automatically reinvest dividends in additional shares of the company’s stock – but I’d sure consider them if I were just starting out. Many will allow investors to begin building portfolios starting with only fractions of a share.

Now, in the midst of a financial crisis, Money Morning says there’s no better time to dip into DRIPs. And, no surprise, it pays to invest in companies that have a history of increasing their dividends.

Of the over 1,600 companies and American Depository Receipts (ADRs) that have DRIPs, Money Morning highlights several that have good dividend track records. Among those mentioned are Coca-Cola [[KO]], Intel [[INTC]], Microsoft [[MSFT]], and Exxon Mobil [[XOM]].

For more on DRIPs, see DRIP Central’s online guide to DRIP Investing, Step by Step. Also, you can find a list of DRIP stocks that will accept investments of as little as $25 at The DRIP Investing Resource Center.

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