Summary of Dividend Reinvestment Plans
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Summary of Dividend Reinvestment Plans
Today, about a thousand corporations (mainly the larger ones) offer dividend reinvestment plans. Only about 25 percent of the shareholders actually choose to take advantage of them. Yet, corporations will continue to offer discounts because DRIPs have proven themselves to be a good way to raise capital. Furthermore, as more investors learn about the benefits of DRIPs, one might expect that more and more investors will be drawn to the advantages that these programs offer them.
Practical Ideas I Can Start with Today
- Research the DRIP offering of companies that I am interested in (company Websites usually offer an investor’s page with this information).
- Sign up for the company’s dividend reinvestment plan if I am already investing in its stock.
- Contact a brokerage to begin buying shares of the company’s stock.
What you have learned
- What Are Dividend Reinvestment Plans?
- Two Types of Dividend Reinvestment Plans
- Benefits of Dividend Reinvestment Plans
