By Aimee Bohn A dividend reinvestment plan (DRIP) is an automated investing program. It’s a powerful tool to help you to build wealth and save for retirement.
A dividend is usually a cash reward from a company given to shareholders on a per-share basis. Rather than receiving the money, you reinvest the dividends to get more shares in the company.
DRIPs can allow you to compound your gains and reduce risk with dollar-cost averaging. Instead of sitting idly in cash, your money can grow exponentially over time.
How a Dividend Reinvestment Plan (DRIP) Works
Finding stable dividend-paying companies is key to maximizing your returns. And there are …read more
