I've decided to take the proceeds from our recently disbanded investment club and invest them in a portfolio of dividend reinvestment/direct stock purchase plan stocks.

The companies that I choose must offer direct purchases through their plan (in other words, they must not require you to already own shares), have a low initial purchase cost (preferably not much more than $250), have reasonable additional purchase minimums, and have reasonable fees for reinvestments and additional purchases. If they offer automatic investing options, so much the better. I will be dollar cost averaging into these plans as well, though I haven't decided whether I will invest a little in each stock each month, or make one or two larger investments into selected companies based on what stocks have the best valuations at the time.

Of course, the companies must all have good total return prospects right now, and be high quality companies. I will try to diversify as best I can, but I expect this portfolio will be overweighted in large company stocks.

I will be posting some stock studies as I research companies and their direct purchase plan details in the Stocks forums here on StockCentral, and let you know the decisions that I make. I'll provide updates on the performance of the portfolio, as well.

To get started, I have posted studies on two initial candidates, AFLAC and Procter & Gamble. I plan to look at CVS shortly, too.

If you have any suggestions for stocks, please do let me know!

Doug

 

Try looking at Johnson Controls (JCI). They are a major player in the Lithium Battery manufacture for electric cars, and they are significant in commercial building Heating, Ventilation, and Air Conditioning (HVAC) systems and controls. Further, I think they meet your criteria for investment minimums.

Note: I started my sons in JCI's plans and have participated for the last two years.