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what are DRIPs?

A company sponsored DRIP is a dividend reinvestment plan offered by a public company to promote long term stock ownership. The plan typically allows for an investor to invest and reinvest dividends in the company's stock. DRIPs are usually promoted for their low ownership costs and convenience of allowing investors to invest small amounts of money on a regular basis.

DRIPs may also be referred to as:

  • Dividend reinvestment plan
  • Direct stock purchase plan
  • Direct stock investment plan
  • Company sponsored stock purchase plan
  • Direct investment program
  • Direct investing