| What is a dividend reinvestment plan? Many
publicly held companies allow shareholders to reinvest their dividends
in the company's stock, as well as purchase additional shares of the stock
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. |
