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Automatic Dividend Reinvestment
(redirected from Automatic Investment Plan)

   Also found in: Acronyms 0.01 sec.
Automatic Dividend Reinvestment
A practice or agreement in which dividends on a security are used to buy more of the same security, rather than disbursed to the investor in cash. Automatic dividend reinvestment is relatively common in mutual funds; investors agree to use dividends and other capital gains to reinvest in more shares of the mutual fund. While this involves assuming more risk in the mutual fund, it carries the possibility of higher returns.

automatic dividend reinvestment


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The initial minimum investment is only $50 when establishing an automatic investment plan and applying online through MOAAS's Web site www.
ShareBuiler is an online brokerage specializing in automatic investment plans.
She should instead put that money, along with the $3,000 already accumulated, into an automatic investment plan as part of a Uniform Gift to minors custodial account or 529 College Savings plan in 7-year-old Julian's name.
 
 
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