For many individuals, the biggest obstacle that prevents them from getting started investing is a lack of money. "I don't have thousands of dollars to open a brokerage account. How can I invest in the stock market?" The answer is quite simple: invest in stocks through dividend reinvestment plans -- also known as DRIPs. Using DRIPs, anyone can build a portfolio of common stock with no or low commissions or fees. - [Read more]

Direct investment plans, also known as dividend reinvestment plans (DRPs or DRIPs), are plans offered by companies to enable shareholders to invest cash and/or reinvest dividends through the company (or its agent) to buy shares without a broker. - [Read more]

What Are DRIPs (Dividend Reinvestment Plans)?

DRIP (or DRP) is an abbreviation for Dividend ReInvestment Plans. DRIP is an investment plan that allow us to reinvest dividends (to use dividends to buy more stocks) without paying brokerage commissions. Some DRIPs allow purchasing additional stocks, also without paying brokerage commissions.