Flexible Reinvestment program

6/15/2017 AAPL Bought 1 AAPL @ $144.149

A few days ago I got my 205th share of Apple, and I did nothing to get it except keep my money at play and at risk.

I love my FRIP. It always feels like free money. I'm not going to get rich from my dividends any time soon, but I'm not playing the game for soon.

Assuming the dividend stays the same (it won't), and assuming the stock price stays the same (it won't), I'll get about $3,000 over the next five years.

Nothing to sneeze at, but not bad.

But I expect the dividends to go up, and I expect the stock price to go up, so we'll see how much money it actually is, but the wondrous thing about a flexible reinvestment program (FRIP) is that the shares I buy with my dividend also get dividends. It's a silly amount. I think I got like an extra $2 this time around, but the shares I buy can also go up in value, so I think I got my first FRIP share at like $103, so I've made a $42 portfolio return on that one share.

It adds up.

Dividends also hedge against loss. My AAPL is up an insane amount from when I invested, but it's also been a bit volatile. But even in the unlikely event that my stock plummeted all the way down to even lower than what I purchased it for, it would have to actually go considerably lower for me to no longer be in the black. I have confidence this isn't going to happen any time soon. So I'm going to ride this for another few years. Check in with me then!

• Christopher


Monkey see, monkey do.