A scheme offered by many companies to their shareholders as an alternative to receiving dividends in cash, allowing them at their option to take up newly created shares instead.

An investment plan offered by some corporations enabling shareholders to automatically reinvest cash dividends and capital gains distributions, thereby accumulating more stock without paying brokerage commissions. Many DRIPs also allow the investment of additional cash from the shareholder, known as an optional cash purchase. also called Dividend Reinvestment Program. see also reinvestment, direct purchase program.

An alternative to cash dividends, allowing shareholders to receive new shares instead of cash. These shares are often issued at a discount and no brokerage or stamp duty is paid.

The automatic reinvestment of shareholder dividends in more shares of the company's stock.

this plan automatically purchases a company's stock with a shareholder's dividends from that stock.

A plan offered by corporations to re-invest dividends, often at a discount from market price and without incurring any fees.

an option given to shareholders allowing them to reinvest all or part of their dividends in additional new shares, usually at a discount from the market price.

A plan that allows stockholders to automatically reinvest dividends in additional shares of the company's stock. View LEI Lesson(s) that address this term

A company's dividend reinvestment plan is its system to automatically reinvest shareholders' dividends in additional shares of the company's stock, often without any commissions, thus offering a way to increase a shareholder's stock holdings at a minimal expense using dollar cost averaging.

An arrangement that combines dividend reinvestment with the opportunity to purchase additional shares of stock directly from the company at a reduced price.

A means of reinvesting dividends, which would otherwise be paid to the shareholder in cash, in additional stock of the company.

Where investors elect to use their dividend and/or capital gain distributions to purchase additional units in the fund rather than receive the money.

Some companies allow dividends to purchase additional shares instead of making cash disbursements. Some even discount the current market price.

A plan that permits stockholders to have cash dividends reinvested in the corporation's stock.

Plans that allow shareholders to use dividends to systematically buy small amounts of stock, often at no commission. In some cases the shareholder might not need to pay taxes on these re-invested dividends, but in most cases they do.

Automatic reinvestment of dividends into more shares of stock. Dividend reinvestment plans are a convenient ways to accumulate more shares.

A mutual fund share account in which dividends are automatically reinvested in additional shares. With this type of account, capital gains distributions are also automatically reinvested. Dividends (but not capital gains) may be reinvested at offering price (i.e., with a sales charge), but are more commonly reinvested at asset value.

Buying more shares in a company by automatically reinvesting any dividends.

The automatic investment of shareholder dividends into additional shares of the company's stock. An excellent investment approach, especially for those with smaller amounts to invest. See Investing Through Drips.

Buying additional shares directly from a company with your dividends.

A company program that allows its dividends to be reinvested in additional shares. The shares may be sold at a discount from the current market price.

See DRIP.

Plans that require you to buy just a single share of a company's stock to enroll. Ideal for investors who want to start with a small position in a stock and add to it on a periodic basis and the dividends are automatically reinvested in more shares. An additional advantage is that one can invest in a company without having to pay brokerage commissions or buy 100 or more shares at once - as some brokers require.

Investment program that allows shareholders to automatically reinvest their dividends in additional shares of stock.

An investment plan that allows shareholders to automatically reinvest dividends and capital gains distributions, thereby accumulating more stock while avoiding brokerage commissions.

A scheme that enables shareholders in a company to acquire shares instead of taking their dividends in cash.

A program in which a dividend paying company (especially mutual funds) will automatically reinvest an investor's dividend to purchase additional shares of the company's stock. The dividend is still taxable by the IRS. In participating in a DRIP, investors use dollar cost averaging to increase their amount of capital in the stock. See: Dollar Cost Averaging

The automatic reinvestment of dividends back into the security that issued the dividend. Usually done with little or no fee.

Many publicly held companies allow shareholders to reinvest their dividends in the company's stock as well as purchase additional shares of the stock through dividend reinvestment plans, or DRIPs. Enrolling in a DRIP enables you to build your investment gradually, taking advantage of dollar cost averaging and usually paying only a minimal transaction fee for each purchase. Many DRIPs will also buy back shares at any time you want to sell, in most cases for a minimal sales charge.

A program in which a current stockholder can reinvest the dividends from those shares for additional shares. This bypasses the broker, and any attached commissions.

A program offered by companies that allow investors to buy their stock directly from the company, without using a brokerage firm.