Dividend Reinvestment Plan - DRIP

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.

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. Most DRIPS don't allow reinvestments much lower than $10.

This term is sometimes abbreviated as "DRP".


Investment dictionary. . 2012.

Look at other dictionaries:

  • Dividend Reinvestment Plan — program that automatically reinvests dividends towards the purchase of additional shares (Finance) …   English contemporary dictionary

  • Dividend reinvestment plan (DRP) — Automatic reinvestment of shareholder dividends in more shares of a company s stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Dividend reinvestment plans allow shareholders …   Financial and business terms

  • plan — ▪ I. plan plan 1 [plæn] verb planned PTandPPX planning PRESPARTX 1. [intransitive, transitive] to think carefully about something you want to do in the future, and decide exactly how you will do it: • We ve been planning this …   Financial and business terms

  • reinvestment — Use of investment income to buy additional securities. Many mutual fund companies and investment services offer the automatic reinvestment of dividends and capital gains distributions as an option investors. Bloomberg Financial Dictionary * * *… …   Financial and business terms

  • Common stock dividend — A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of cash or other like stock. The law may regulate the size of the common stock dividend… …   Wikipedia

  • Systematic Investment Plan - SIP — This is a plan where investors make regular, equal payments into a mutual fund, trading account or retirement account, such as a 401k. By using a systematic investment plan (SIP), investors are benefitting from the long term advantages of dollar… …   Investment dictionary

  • DRP — Disaster Recovery Plan (Business » General) * Dividend Reinvestment Plan (Business » Stock Exchange) * Distribution Requirements Planning (Business » General) * Distribution Resource Planning (Business » General) * Debt Reduction Program… …   Abbreviations dictionary

  • ConnectEast — Type Public (ASX: CEU) Industry Transportation Founded Mount Waverl …   Wikipedia

  • distribution — Selling a large lot ( lots) of a security in such a way that the security price is not heavily influenced. Bloomberg Financial Dictionary Corporate action that occurs when the issuer of a security delivers a particular benefit or proceeds ( e.g.… …   Financial and business terms

  • ИНВЕСТИРОВАНИЕ: СПОСОБЫ И СТРАТЕГИЯ — INVESTMENT METHODS AND STRATEGIESСамые различные теории существуют насчет того, как наиболее удачно выбирать ценные бумаги. Разница между ними заключается главным образом в том, насколько они отличают капиталовложения (инвестиции) от спекуляций.… …   Энциклопедия банковского дела и финансов

  • идентифицированные акции — Акции компании или взаимного фонда, для которых должна быть установлена дата и цена покупки. Если держатель акций желает минимизировать налог на прирост капитала при их продаже, он должен указать, когда были куплены конкретные акции и по какой… …   Финансово-инвестиционный толковый словарь

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.