Introduction to Dividend Reinvestment Plans

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Dividend reinvestment plans give investors the option of reinvesting their dividends in additional shares of stock.

What you will learn

  • What Are Dividend Reinvestment Plans?
  • Two Types of Dividend Reinvestment Plans
  • Benefits of Dividend Reinvestment Plans

What do you know?

Introduction to Dividend Reinvestment Plans

Investing in stocks is not hard. With some knowledge and a little bit of luck, you can increase your assets. While most investors elect to purchase shares directly from a stockbroker, an interesting alternative exists—dividend reinvestment plans.

If you already own shares of a company you want to invest in, consider using their optional dividend reinvestment plan. You can save on brokerage fees and possibly even reinvest dividends.