Terms Beginning With 'd'

Dividend Reinvestment Plan

  • January 11, 2020
  • Team Kalkine

Companies distributing dividend usually offer dividend reinvestment plans (DRPs) to investors, that allow them to reinvest their cash dividends on the dividend payment date into fractional shares or additional shares of the underlying equity.

This allows investors to immediately invest their investment return from dividends for compounding or price appreciation, without incurring brokerage fees.

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