Stocks — DRIPS
Radio Transcript, 60 seconds, for use during week
of October 1.
This is an Invest Wisely minute brought to you by Iowa State
If you are investing for a financial goal many years in the
future, you may want to consider a company that has a dividend
reinvestment plan, also known as a DRIP. This means you
receive no cash dividend income, because you will be reinvesting
those dividends to purchase additional shares of stock. And
you can buy more shares with extra cash you want to invest.
Drips are an easy and less expensive way to purchase additional
shares of stock, because you aren’t paying any brokerage
But remember, this will only work for you if you really don’t
need the dividend income in the near future.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.