DRIP Stock Investing:

Collecting More Stock Automatically

Then, DRIP investing may be the tool you need.

Do you want to reinvest your dividends without having to think about it?

DRIP is an arrangement where dividends are automatically reinvested into more shares.

Thus, a DRIP plan makes it easier and, at times, cheaper to reinvest dividends.

What is DRIP Stock Investing?

When you buy dividend stocks, companies pay you periodically for holding their shares.

In a DRIP plan, instead of receiving that small dividend check at the end of every financial period,

the company reinvests the dividend payout and buys more shares in a DRIP plan.

How Does DRIP Stock Investing Work?

A DRIP plan offers investors an opportunity to reinvest their cash dividend. However, they will need to buy the shares directly from the company.

Fractional Shares

Dividend dripping isn’t limited to a whole share, and this is why these plans are unique. That means you can own 1.75 of a share instead of two shares.

Pros of DRIP Stock Investing

Dollar-cost averaging

Immediate reinvestment

Lower commissions

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