DRIP Investing

DEFINITION Investment plan that allows stockholders to purchase additional stock of the firm from dividends and capital gains distributed to them, without incurring brokerage charges. Also called dividend re-investment program. A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.
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Stockstrokes

A DRIP is an excellent way to increase the value of your investment. Most DRIPs allow you to buy shares commission free and at a significant discount to the current share price. This term is sometimes abbreviated as "DRP"

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