dividend reinvestment plan

dividend reinvestment plan
( DRP)
Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. dividend reinvestment plans allow shareholders to accumulate stock over the long-term using dollar cost averaging. The DRP is usually administered by the company without charges to the holder. Bloomberg Financial Dictionary
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Also dividend with reinvestment option Euroclear Clearing and Settlement glossary
A DRIP generates the distribution of a right which allows holders to exchange cash that they decide to reinvest for example shares that the company (or its agent) must acquire on the market. Euroclear Clearing and Settlement glossary

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dividend reinvestment plan ˌdividend reinˈvestment ˌplan noun [countable] FINANCE
in the US, an arrangement offered by companies to shareholders for their dividends to be paid in the form of new shares rather than cash:

• The company also announced a dividend reinvestment plan yesterday to encourage shareholders to buy new stock at a 3% discount.

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dividend reinvestment plan UK US noun [C] (ABBREVIATION DRIP)
FINANCE a form of investment in which the investor's dividends are used to buy more shares in the company, rather than being paid as cash: »

The Company has a Dividend Reinvestment Plan which allows shareholders to reinvest their dividends through a specially arranged share dealing service.


Financial and business terms. 2012.

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Look at other dictionaries:

  • dividend reinvestment plan — (DRIP) A plan under which shareholders can elect to receive shares instead of receiving a cash dividend. Once the shareholders elect to take shares, the company s registrars will arrange for the shares to be purchased on the market. Brokers costs …   Law dictionary

  • Dividend reinvestment plan — A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly dividends directly as cash; instead, the investor s… …   Wikipedia

  • Dividend reinvestment plan (DRP) — Automatic reinvestment of shareholder dividends in more shares of a company s stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Dividend reinvestment plans allow shareholders …   Financial and business terms

  • dividend reinvestment plan — Also dividend with reinvestment option A DRIP generates the distribution of a right which allows holders to exchange cash that they decide to reinvest for example shares that the company (or its agent) must acquire on the market …   Euroclear glossary

  • Dividend Reinvestment Plan - DRIP — A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. A DRIP is an excellent way to increase the value of your investment. Most… …   Investment dictionary

  • Dividend Reinvestment Plan — program that automatically reinvests dividends towards the purchase of additional shares (Finance) …   English contemporary dictionary

  • dividend reinvestment — ( DRIP) Euroclear Clearing and Settlement glossary Dividend payment where cash dividend is rolled over into additional shares in the issuing company. Euroclear Clearing and Settlement glossary See also dividend reinvestment plan / dividend with… …   Financial and business terms

  • dividend reinvestment — (DRIP) Dividend payment where cash dividend is rolled over into additional shares in the issuing company. See also dividend reinvestment plan / dividend with reinvestment option …   Euroclear glossary

  • plan — ▪ I. plan plan 1 [plæn] verb planned PTandPPX planning PRESPARTX 1. [intransitive, transitive] to think carefully about something you want to do in the future, and decide exactly how you will do it: • We ve been planning this …   Financial and business terms

  • dividend — /div i dend /, n. 1. Math. a number that is to be divided by a divisor. 2. Law. a sum out of an insolvent estate paid to creditors. 3. Finance. a. a pro rata share in an amount to be distributed. b. a sum of money paid to shareholders of a… …   Universalium

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