Dividend Re-Investment Program
A DRIP, or Dividend ReInvestment Program, is a method of investing that makes it easy to build an investment in a single companies stock, over a period of time. These programs work by allowing investors to buy a set price worth of shares on a recurring basis. Entry costs are generally low, and additional benefits come from the fact that investors buy from the company directly and so avoid brokers fees. The key feature of a DRIP is that dividends paid are reinvested in the company, with additional shares being automatically bought on the investors behalf.
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Drip investment programs at their heart seem relatively sim
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