Dividend Reinvestment Plan
Dividend Reinvestment Plans | What are they?
Automatic reinvestment of shareholder
dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Dividend reinvestment plans (DRPs) allow shareholders to accumulate stock over the long term using dollar cost averaging. Such plans are usually administered by the company without charges to the holder.
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