DRIP
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Dividend reinvestment plan |
|---|---|
| Categories | Business & Finance |
DRIP stands for Dividend reinvestment plan, a stock market & investing abbreviation.
Program that automatically uses an investor's cash dividends to buy additional shares, often fractional, of the same stock or fund, compounding holdings over time. Many companies and most brokers offer DRIPs without commissions.
Example: Through the DRIP, her 100 shares grew to 147 over ten years without any new purchases.
Usage notes
Also written DRP, mainly in Australia and the UK. Reinvested dividends are still taxable in a regular US brokerage account in the year they are paid. Some company-sponsored DRIPs have offered shares at a small discount to the market price.
Related abbreviations
More stock market & investing abbreviations
- DAX – Deutscher Aktienindex (German stock index)
- DCA – Dollar-cost averaging
- DEF 14A – Definitive proxy statement (Schedule 14A)
- DJIA – Dow Jones Industrial Average
- DM – Developed markets
- DPS – Dividends per share
- DTCC – Depository Trust & Clearing Corporation
- DTE – Days to expiration
- EAFE – Europe, Australasia and Far East
- ECN – Electronic communication network
- EDGAR – Electronic Data Gathering, Analysis, and Retrieval
- EM – Emerging markets