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Dividend Reinvestment Plan
Term category: Stocks
In 10 words or less:  A plan that allows investors to reinvest their dividends.

Definition: A dividend reinvestment plan (DRIP) allows investors to use their dividends to buy more shares of stock.

Advice: By reinvesting dividends, investors can enhance their long-term value creation.  Over time, these dividends will add up considerably through compounding.

 

 


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