Skip to content

Find a question

Can’t find what you’re looking for? Ask us a new question!

What is a Dividend Reinvestment Plan (DRIP) and how do I set one up?



Our response:

A dividend reinvestment plan (DRIP) lets you automatically reinvest dividends by buying more shares without paying a commission. DRIPs tend to be offered by larger, well-established companies with a history of paying dividends. Check a company’s website to find out if they offer a DRIP. You can enrol yourself in the plan through the company’s transfer agent, or your investment firm may be able to do this for you.

3 advantages of a DRIP

  1. You can usually buy the extra shares for less than their current price.
  2. You can avoid paying a commission.
  3. You can reinvest small amounts, often as little as $10.

Can’t find what you’re looking for?

Copy the URL to share:

  Share the site: