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What Are Accumulating Shares?

By Lyle DalyUpdated May 30, 2025 at 7:07 PM | Fact-checked by Frank Bass

Key Points

  • Companies can issue accumulating shares to save cash and invest in growth, without diluting current shareholder value.
  • Shareholders generally can't choose between cash or stock dividends; this is decided by the board of directors.
  • Setting up a DRIP allows investors to automatically reinvest dividends, growing their shareholdings over time.

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