Dividend Reinvestment Programs (DRIPs) are very much like how they sound. Certain companies and ETF providers distribute cash dividends which then are distributed to shareholders. This feature would automatically allow you to reinvest cash dividends in order to buy more of that company’s stock. Typically, the dividend would need to be enough to cover the purchase of full shares, otherwise, the remaining amount would stay in cash. More information on DRIPs can be found here.
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