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English definition of “dividend reinvestment plan”

dividend reinvestment plan

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.
(Definition of dividend reinvestment plan from the Cambridge Business English Dictionary © Cambridge University Press)
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