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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
A good drip line length should be 36-50 metres, depending with the water pressure.Once in a while, test water flow rates in the drip lines by placing a beaker on the lower side of the emitter while timing to determine the amount of water it supplies to the crops.
For his orchards, the drip irrigation runs for about seven hours every day.
Having the perfect complexion also necessitates having a robust inner health, and our blue immuno-boost drip is the one you need for this.
Pulse drip irrigation consisted in splitting the required volume into six irrigation pulses with 30-min interval, whereas continuous irrigation consisted in applying the required water volume without interruption.
So within an hour of having the drip, all the vitamins and minerals have passed through in your urine, and sometimes in a matter of minutes.
Drip irrigation, which allows water application at a low rate, achieves high efficiency in terms of water use and low energy requirement compared to sprinkler irrigation, and is being used on cash crops in Pakistan (World Bank, 2012).
ReShape is a great blend for weight-watchers who hope to stay in perfect shape with a drip infused with vitamins, slimming L-carnitine, and other potent fat-burners and antioxidants.
Drip loss: A 4 cm diameter sample was collected and weighed, followed by suspending from a steel wire hook within a polyethylene plastic bag at 4[degrees]C for 24 h.
In late June 2016, Leadpages announced the integration of Drip with its platform to enable customers to link landing pages and email automation campaigns.
Drip irrigation not only saves water, but is also proving a bonanza for companies that manufacture the irrigation systems.
The uniform application of drip irrigation is not affected by wind because the water is applied above the surface.
The Prime Minister, in turn, highlighted the need to create a major plan for development of greenhouses and drip irrigation.