dividend reinvestment plan Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “dividend reinvestment plan” in the English Dictionary

"dividend reinvestment plan" in Business English

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dividend reinvestment plannoun [C]

uk   us   ( 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 ​allowsshareholders to reinvest their ​dividends through a specially ​arrangedsharedealingservice.
(Definition of dividend reinvestment plan from the Cambridge Business English Dictionary © Cambridge University Press)
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