Dividend Reinvestment Plan
What is a Dividend Reinvestment Plan (DRIP)? A dividend reinvestment plan (DRIP) allows stock investors to have their dividends automatically reinvested in shares of a stock, commission-free. Such plans can be handy for long-term investors who don’t need their dividend income paid out and would prefer to reinvest it. Note that the dividend income is taxable even though it is reinvested.
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