DRIP

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Dividend Reinvestment Plan

A practice or agreement in which dividends on a security are used to buy more of the same security rather than be disbursed to the investor in cash. A dividend reinvestment plan 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.

DRIP

Dividend reinvestment plan (DRIP).

Many publicly held companies allow shareholders to reinvest dividends in company stock or buy additional shares through dividend reinvestment plans, or DRIPs.

Enrolling in a DRIP enables you to build your investment gradually, taking advantage of dollar cost averaging and usually paying only a minimal transaction fee for each purchase.

Many DRIPs will also buy back shares at any time you want to sell, in most cases for a minimal sales charge.

One potential drawback of purchasing through a DRIP is that you accumulate shares at different prices over time, making it more difficult to determine your cost basis -- especially if you want to sell some of but not all your holdings.

References in periodicals archive ?
There is an urgent need for prevention programs that educate youth about the potential dangers and toxicity of the use of e-cigarettes for dripping," the researchers noted.
Ray Story, CEO of Tobacco Vapor Electronic Cigarette Association, said the number of users who have tried dripping was merely a small portion of e-cigarette users as a whole and denounced the trend.
Parks said the 2,000 weddings Dripping Springs hosts each year have a huge effect on the tiny town's economy.
The batch of dripping was unlikely to pose any risk to health because of the high temperatures at which it was processed, said FSA officials.
A new drop-formation experiment in Texas demonstrates a way to prevent dripping when a layer of a dense fluid, such as oil, is placed above a lighter fluid, such as air.
But that would be an impudence entirely inconsistent with the seriousness with which she took the act of painting and the importance she so clearly attached to the physics of dripping paint.
The key to preventing PAHs: Stop the fat from dripping on the heat source (see "Avoiding HCAs and PAHs").
Department of Energy's plan to claim safety credit for "drip shields" expected to protect metal nuclear waste containers from water dripping into the proposed underground waste dump at Yucca Mountain.
WHATEVER'S DRIPPING, ONCE IT SEEPS INTO THE GROUND, IT'S CONSIDERED HAZARDOUS MATERIAL.