Meaning of “dividend reinvestment plan” in the English Dictionary

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"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 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)