Introduction to Dividend Reinvestment Plans
(1 of 5)
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.