DRIPS Meaning and
Definition
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DRIPS is an acronym that stands for Dividend Reinvestment Plans. It refers to a method used by investors to reinvest their cash dividends into additional shares of the same company's stock rather than receiving them as cash payouts.
DRIPS provide shareholders with an option to automatically reinvest the dividends they receive back into the company, thereby allowing their investment to grow over time. The reinvested dividends are used to purchase additional shares at the current market price, typically at a discount to the market price. This can be an attractive option for long-term investors who are seeking to maximize their returns and compound their investments.
DRIPS offer several benefits to investors. Firstly, they provide a convenient and cost-effective way to reinvest dividends without incurring brokerage fees. Secondly, they allow investors to accumulate shares incrementally over time, potentially benefiting from dollar-cost averaging. Additionally, DRIPS can help to increase diversification within a portfolio by reinvesting dividends across a range of stocks within the same company or even different companies.
While DRIPS can be advantageous for some investors, it is important to note that they are not suitable for everyone. Investors who rely on cash dividends for income purposes might prefer to receive the payouts in cash rather than reinvesting them. Furthermore, DRIPS may not be available for all stocks, and investors should carefully consider the terms and conditions of a particular DRIP before participating.
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Steps made in flat roofs or in gutters.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for DRIPS *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for DRIPS
Similar spelling words for DRIPS
Conjugate verb Drips
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