reinvestment plan

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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 ?
equi serve, corn), a company that allows investors to make direct investments in publicly traded companies through Dividend Reinvestment Plans (DRIPs).
Dividend reinvestment plans are a consistent, long-term way of saving to accumulate shares and wealth,'' said Vita Nelson, editor and publisher of The Money Paper.
12 /PRNewswire/ -- The majority of companies comprising the Dow-Jones Composite Average and the S&P 500 Index offer dividend reinvestment plans (DRPs), reports Evergreen Enterprises, publisher of the Guide to Dividend Reinvestment Plans.
By eliminating the discount, this brings the terms of the Plan in line with those of most other dividend reinvestment plans offered.
DRPs on Disk lists 975 companies that offer dividend reinvestment plans to their common stock shareholders.
These direct stock-purchase programs are enhanced versions of dividend reinvestment plans or DRIPs.
July 20 /PRNewswire/ -- Investors who participate in dividend reinvestment plans (DRPs) don't like down markets, but they do appreciate the opportunity to buy more shares of a stock they already own and believe in, according to Sumie Kinoshita, Editor of the "Guide to Dividend Reinvestment Plans.
The fast-food chain is among a growing list of companies that are bypassing brokers through dividend reinvestment plans, or DRIPs.
Most companies that issue dividend-paying stock also have automatic dividend reinvestment plans.
The Directory, the oldest of its kind, continues to provide the small, individual investor with details of dividend reinvestment plans (DRP) that buy, sell and transfer stocks for plan participants.
Dividend reinvestment plans do have some disadvantages, particularly in the area of taxation.
July 7 /PRNewswire/ -- Dividend reinvestment plans (DRPs) offer a way around the difficulty of executing stock trades within the new three-day settlement (T+3) requirement.