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What Is a Dividend Reinvestment Plan (DRIP)?

By Kristi WaterworthUpdated Jul 1, 2025 at 3:13 AM

Key Points

  • DRIPs allow automated reinvestment of dividends to buy more shares, growing portfolios effortlessly.
  • Using DRIPs prevents frequent portfolio checks, reducing panic selling during market downturns.
  • Compound growth via DRIPs significantly increases investment value over time without extra effort.

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