What is a Drip you ask? Drip is an acronym that stands for “(D)ividend (R)e(I)nvestment (P)lan”. And in some cases, a Drip is one of the best ways to invest in any dividend paying stock. If you buy a dividend paying stock, and you should, you immediately begin seeing returns in the form of income.
When you participate in a DRIP account, those dividend incomes are automatically reinvested into shares of that stock. Each dividend buys you an increment of a share. As the years pass, those shares that you bought with the dividends begin earning shares of their own. You begin earning money on the money you already earned. Win-Win.
Many DRIP accounts can be started for as little as $250 initial investment and usually have little to no fees.
Information about a companies individual drip account set up can usually be found in the companies “investor relations” section of their website. You can also look up many of them at equiserve.com
[tags]DRIP, Dividend, Invest, Income[/tags]
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