reinvestment plan

Reinvestment Plan

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. A 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.

reinvestment plan

References in periodicals archive ?
Shareholders who wish to enroll for the first time in the enhanced Dividend Reinvestment Plan must do so prior to the July 19, 2017 ex-dividend date if they wish to participate in the Plan for this months dividend.
The company has adopted a dividend reinvestment plan (DRIP) that provides for reinvestment of dividends on behalf of stockholders, unless a stockholder elects to receive cash.
TEPPCO Partners LP (NYSE: TPP), a US-based company that stores and transports oil and gas, has suspended a distribution reinvestment plan (DRIP).
DuPont announces it is executing its $100 million reinvestment plan that was announced late last year to increase its speed-to-market for new seed products.
Obtaining an approval of the reinvestment plan by the chief executive officer (or official of equal standing) or the board of directors, within the required period (Sec.
Bernard observed that the Notice is silent in respect of when the dividend reinvestment plan must be completed.
The plans also reinvest all or partial dividends paid into more stock, thus the name ``Dividend Reinvestment Plan.
This paper examined the impact on security returns and shareholder wealth of the decision to initiate a dividend reinvestment plan.
NEW YORK -- Ares Capital Corporation (NASDAQ: ARCC) today announces certain aspects and features of its dividend reinvestment plan to former Allied Capital Corporation stockholders.
Baytex has a Dividend Reinvestment Plan that provides a convenient and cost-effective method for eligible holders in Canada and the United States to maximize their investment in Baytex by reinvesting their monthly cash dividends to acquire additional common shares.
The board of directors of non-diversified, closed-end investment company, the Korea Fund Inc (NYSE:KF) approved American Stock Transfer & Trust Company LLC (AST) as its new transfer agent and made some amendments to its Dividend Reinvestment Plan (the Plan), it revealed on Friday.