My Top 10 DRIP Picks to Build a Portfolio in 2017
With a dividend reinvestment plan, your loose change can put you on the path toward a secure retirement.


Over the past year or so, I’ve written about the advantage of following a dollar-cost averaging strategy through dividend reinvestment plans (DRIPs) and holding on for the long term — the longer the better! With this strategy, even the smallest investor can efficiently invest in equities.
The advantages are substantial: You minimize the risk of entering the market at what might turn out to be the wrong time. You naturally “average down,” because your regular investments buy fewer shares when prices are higher and more shares when prices are lower.
What’s more, by holding high-quality dividend-paying stocks over the very long term (particularly companies that routinely raise their dividend payouts), the “magic” of compounding will turn even modest investment amounts into substantial wealth.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What’s great about DRIPs is that you don’t need a lot of money to get started. Your loose change — or the money you spend on coffee or impulse items at the gas station — can set you on the road to a secure retirement. That’s because many DRIPs accept investment amounts of as little as $25 or $50.
You don’t have to have a stash of cash to start with, but you do have to start!
There are almost 1,300 dividend-paying companies that offer the opportunity to buy shares directly through their DRIP. Many of them do not charge commissions or fees and will set up schedules to withdraw funds from your bank account to automatically fund your DRIP account in order to regularly buy additional shares (or fractions of shares depending on the price of the stock) on the company investment dates.
Below is a 10-stock DRIP portfolio that could stand as a core portfolio for those who are seeking to get rich slowly, while minimizing the risk of falling prey to their emotions as they build wealth over the long term. You can click on the company ticker symbols in the list below to find out the specifics of the company’s plan.
Hormel Foods (symbol HRL)
RPM International (RPM)
Altria Group (MO)
3M Company (MMM)
Johnson & Johnson (JNJ)
PepsiCo (PEP)
NextEra Energy (NEE)
Costco Wholesale (COST)
Comcast (CMCSA)
Union Pacific (UNP)
An investment of just $25 a month in each of these 10 DRIPs ($250 a month) is a great start. You’ll earn dividends, which are automatically reinvested to buy additional shares to increase your holdings. Instead of making a lump investment in the hopes that you are getting in at a good price, your $25 per month will buy as many shares — or fractions of shares — at the market price on the investment dates … not too many if the price is high and more if the price is low. Do that 12 times a year, year after year, and you will be surprised at how much wealth you are bound to accumulate.
Ms. Vita Nelson is the Editor and Publisher of Moneypaper's Guide to Direct Investment Plans, Chairman of the Board of Temper of the Times Investor Service, Inc. (a DRIP enrollment service), and co-manager of the MP 63 Fund (DRIPX).
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Standard Deduction 2026 Amounts Are Here
Tax Breaks What is the standard deduction for your filing status in 2026?
-
New 2026 Tax Brackets Are Set: What to Know Now
Income Tax The IRS has adjusted federal income tax bracket ranges for the 2026 tax year to account for inflation. Here's what you need to know.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You Wish
Your will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) Contributions
Missing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out On
Most large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible Heir
A spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.
-
Adapting to AI's Evolving Landscape: A Survival Guide for Businesses
Like it or not, AI is here to stay, and opting out could be disastrous for your organization. Instead, focus on what you can control and be flexible, as AI is still evolving.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.