(redirected from drips)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia.

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 ?
So, every month you will have to maintain different records on each and every DRIP stock holding (as opposed to the consolidated statement a broker provides).
As with any investment, there are some drawbacks to investing through DRIPS. For instance, you must report your dividends as taxable income although you don't actually receive them.
That's our sexy boost, our red orange drip. This treatment facilitates the burning of body fats to convert them into energy, a surefire way of achieving your desired sexy body.
The components of a 300ml vitamin drip, contains 16 vitamins and minerals, ranging from vitamin B1, which is said to encourage healthy skin and hair, to vitamin C, to counteract stress.
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.
Assuming you had enrolled in the Pfizer DRIP, that $22 would automatically be reinvested in 0.88 shares of Pfizer, bringing your holdings to 100.88 shares.
But their concern turned to curiosity when it was revealed the singer was hooked up to a vitamin drip.
The benefits of using IV drips to boost energy have been questioned, but it is not believed to be harmful.
Although you forego a broker's commission to enroll in a DRIP program, many companies with direct investment plans require minimum initial investments from $250 to $1,000 to join.
In the other drip study, Bala Ambravaneswaran and his coworkers at Purdue University in West Lafayette made the leap to multiple-drip simulations by sketching individual drips as a line of dots, with each dot carrying certain properties, such as local radius.
The PIG(R) Pan is ideal for catching leaks and drips under machines, spigots, forklifts, drums, and other places.