Investor Glossary-dividend reinvestment planInvestor Glossary-dividend reinvestment planInvestor Glossary-dividend reinvestment planInvestor Glossary-dividend reinvestment planInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Dividend Reinvestment Plan

The HTML to link to this page
 

Under a dividend reinvestment plan (also known as a DRIP or a DRP), investors receive stock dividends in the form of additional shares in a company rather than as a cash payment. Investors who participate in a dividend reinvestment plan receive quarterly notification of new shares purchased. A dividend reinvestment plan is a convenient way for an investor to accumulate additional shares of a company on a regular basis. There are several advantages to participating in a dividend reinvestment plan; stock purchase fees are often lower or may be waved entirely and some companies offer stock at a discount to investors who participate in their dividend reinvestment plan. The value of stock received though a dividend reinvestment plan is fully taxable. A dividend reinvestment plan may also be called automatic dividend reinvestment.



Rate this Dividend Reinvestment Plan definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, balance sheet, VIX, implied volatility, current ratio, reverse mortgage, risk management, minority interest, option premium, inflation, EBITDA, average price per share, ex-dividend date, annual return, 144a, wholly-owned subsidiary, irrevocable trust, Key Rate Duration, APR, stock split, debt service coverage, deferred tax, 1031 exchange, LIBOR, real GDP, Zero Cost Collar, liquidity ratio, 1035 exchange, FTSE, phantom income, covered put, in escrow, stock market close, per diem, margin rate, open position, quality assurance, dividends payable, deferred revenue, required rate of return, FICO score, retained earnings, diluted share, 401a, class C shares, ex-dividend, command economy, limit order, cancelled check


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use