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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