Dividend Reinvestment Plan - DRIP

What does it Mean? 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.
Investopedia Says... 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".

Terms Related Links

Automatic Investment Plan - AIP
Compounding
Direct Stock Purchase Plan - DSSP
Distribution Reinvestment
Dividend
Dividend Rollover Plan
Dollar-Cost Averaging - DCA
Fractional Share
Reinvestment

Terms Related Links
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What is a DRIP?

How can I purchase stocks directly from a company?

Are Canadians allowed to participate in direct purchase plans for U.S. stocks?

What's the smallest number of shares of stock that I can buy?

What effect does a company's dividend reinvestment plan have on its stock price?

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