A program some corporations offer to their existing shareholders.
DRIP allows existing investors to reinvest their dividends in additional stocks on the dividend payment day.
Instead of sending checks to shareholders, company automatically reinvest the dividends in company shares without the commission, and often with a discount to the current price.
The only weakness of Dividend Reinvestment Plan is that company could buy the shares at high prices for you, even with a discount.. This process is automated and you can’t affect it as long as you are in DRIP.
