A dividend reinvestment plan (DRIP) is a program that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date. Although the term can apply to any automatic reinvestment arrangement set up through a brokerage A dividend reinvestment plan (DRIP) is an arrangement that allows shareholders to automatically reinvest a stock's cash dividends into additional or fractional shares of the underlying company. The stock currently trades at $50 per share and the annual dividend is $0.88 per share. The quarterly dividend has just been paid ($0.88 divided by 4 times a year = $0.22 per share quarterly dividend). Before she enrolled in Pepsi’s dividend reinvestment plan, Mary would normally receive a cash deposit of $220 in her brokerage account. DRIP stands for dividend reinvestment plan, and the concept is simple. When stocks you own pay you a dividend, a DRIP automatically reinvests those dividends into additional shares of the same stock, instead of just adding cash to your brokerage account. The shares are valued at $50 each and are offered at a five percent discount in the dividend reinvestment plan. So you could take $1000 in cash, or you could increase your holding in the stock by 21 shares (the dividend payment of $1000 divided by the discount price of $47.50). (Individuals typically interact with a transfer agent, an entity a company hires to administer its dividend reinvestment plan.) Investors purchase shares with dividends that the company reinvests
A dividend reinvestment plan enables investors to automatically reinvest dividend payments into new shares in the company. DRPs generally allow investors to The Company's dividend reinvestment and share purchase plan (“DRIP”) The Company has the discretion to elect to issue such common shares at up to a 5%
The Auswide Bank Dividend Reinvestment Plan (DRP) allows shareholders to reinvest their dividends into additional Auswide Bank Ltd shares. The choices are
DRIP stands for dividend reinvestment plan, and the concept is simple. When stocks you own pay you a dividend, a DRIP automatically reinvests those dividends into additional shares of the same stock, instead of just adding cash to your brokerage account.
The basic principles of the DRIP are: cash dividends are used to buy ordinary shares in British American Tobacco p.l.c. ( 'Share' or 'Shares') by way of a special a Dividend reinvestment plan ('DRIP') that gives shareholders on the UK share the opportunity to use their cash dividends to buy Tullow Oil plc shares in the A guide to BP's Dividend Reinvestment Plan. 1. What is the DRIP? Under the DRIP, cash dividends are automatically reinvested to buy more ordinary shares