I have DRIPs in PFE, GE and BP. Is this a good diversified group of stocks ?
If this is entirely the only things you have for investments, no. However, DRIPs are tough to diversify because each single DRIP you own has their own tax preparation and set-up making it difficult (unless you hold your DRIP through an online broker). If you have other investments other than DRIPs such as Mutual Funds, CDs, Bonds etc., I think your fine. Your choice of GE also gives you an already diversified portfolio as it represents many industries on it’s own. If you are looking for better growth options, suggest buying shares in other companies through a discount broker as DRIPs aren’t always available for all companies and allows you to immediately liquidate if things turn sour. Your DRIPs you currently own are very solid blue chip companies and so can act as your safety net over the long term. If (LONG TERM ONLY!!) you’d like another DRIP to consider, I would suggest a financial/bank stock. These are traditionally high dividend paying and give high compounded returns overtime. A
