Don’t lose with your B FOLLOWING a divi- ~dend reinvestment plan (DRIP) can help you achieve several invest- * ment objectives — long- term buy and hold, , compounding, low/no » transaction charges. But blindly following a DRIP — like any other invest- : ment program — can cost ~ rather than make you money. “We've noted over the years the list of companies offering DRIPs seems to * include way too many weak performers and companies eaded for serious problems,” _ said Patrick McKeough, pub- - lisher of the Canadian Wealth “A decade or so ago, DRIP stocks included Royal Trustco, Stelco, Dofasco, problems and/or deep market setbacks.” ‘: Once you own a single share in a DRIP company, you may buy additional shares directly from the company without commission and sometimes at a discount of (typically) 5% below the mar- ket price.’ Dividends automati- cally buy more shares (com- pounding), again without people tend to buy and hold DRIP stocks for the long term. - He said investors should see a DRIP only as a bonus, not a reason to invest in a par- ticular company. ‘Jt’s also tempting to choose low-cost index mutual funds and the indexes them- ‘selves (based on the Toronto, New York and other world exchanges) as a way to diversi- fy — especially when most -. other funds in any given year don’t do as well as the rele- vant index. But as the Investment Reporter newsletter * points out, the Dow Jones took 25 years after the 1929 crash to regain its 1929 value, and 17 years after 1964 to get back to its 1964 level. As with DRIPs, you could do better if you invest in and monitor/manage your own carefully chosen and diverse stocks. Take profits — ideally in a low-income year — when you feel you would not put new money into those stocks, .. Include DRIPs and index investing (especially as a way to start out with limited money) but only as part — not instead —- of your over-all strategy... THREE years after donating $1 million to BUSINESS McRae donates $1m to Cap College Capilano College’s Asia Pacific Management Cooperative Program (APMCP), Canadian Lawful lunch mates POLICE officers and business people — such as Const. Heidi Hoffman and Fred Lederer — met over thelr meals at “Take a Police Officer to Lunch” last week at Cheers Restaurant in North Vancouver. Carl Valentine These are limited time offers. 48-mo lease applies to 2001 Sentra XE VOP (C4LG51 BK00); 36-mo lease applies to 2000 Altima GXE (T4RG70 AE00) 2000 Maxima GXE (U4RG70 CK00): Downpayment or equivalent trade $1,999, $3,999, $4,999. Required at signing $2,411, $4,567, 35,812. Total Obligation $11,551, $13,647, $18,967. eases are OAC, close ended, include destination and delivery charges. Based on 20,000 km a year for 2001 Sentra. Based on 24,000 km a year for 2000 Maxima and Altima only. Selling price includes destination and delivery. Taxes, insurance, licenses and acquisition fees are extra. Dealers are free to set individual prices. 2.8% retail finance applies to all 2000 Altima and Maxima models only. Altima* was the highest ranked Entry Midsize car in J.D. Power and Associates’ 1996- ‘Zi ee) ee ~ 24 Litre : toca” 78mm | “standard “asenP “23 titre 980mm stoma not available * 963-9918 Sunday, May 28, 2000 - North Shore News - 19 businessman and philan- thropist, Robert McRae, has pledged another $1 million to support the college’s international programs. The new donation — is intended to promote interna: tional study and work experi- ences for students in the Latin American Management Program (LAMP) and APMCP?. It is specifically directed at developing credit-transfer agreements with master’s degree programs at reputable international universities. “Mr. McRae — strongly believes in helping young peo- ple co work, live and learn in an international context,” said John Pots, Capilano College dean of Business, Human eb ae -1S0NP ashing 53mm not available optional | se REGENCY NISSAN 700 Marine Drive Services and International pro- grams. “This generous dona- tion will support the develop- ment of young Canadian man- agers and will be used to assist them in working abroad in the private sector and in develop- ment capacities. These young, people become ambassadors tor Canada.” McRae and his daughter, Elizabeth Peck, run Canadians Resident Abroad, Inc.. a Toronto company that sends tax and investment reports to Canadian expatriates around the ginbe. An inspirational speaker, his ‘philosophy is well known amongst the students, gradu- ates and faculty members of Capilano College’s internation- al programs. He often says: “I don’t want to be old and pour or dead and rich.” (ep ee stars, Trusks Vans & Mini - ws “Monthly Call for free aick-up < drop by for more details. North Van _ 990-9931 North Vancouver “S# wwwregencyauts.com DRIVEN. - Come IN_AND . BROWSE ON SUNDAYS Ask asocT No NONSENSE LEASING 97 and 1999 US Initial Quality Studies 2smn. 1999 study based on a total of 41,004 consumer responses indicating owner reported problems during the first 90 cays of ownership. 2000 Maxima GXE* voted “Best New Family Cas” (more than $25,000) by Automobile Journalists Association of Canada. See your Nissan Dealer for details.