dividend reinvestment plan

English

Etymology

dividend +‎ reinvestment +‎ plan. From being a plan to buy more shares in the company which issued the dividend by using up the dividend, to reinvest in the company.

Noun

dividend reinvestment plan (plural dividend reinvestment plans)

1. (finance) A company-run program, in which for an enrolled shareholder, the program takes the company's stock dividend payout to the investor, to buy more shares in the company's stock.

Synonyms

• DRIP (abbreviation)
• dividend reinvestment program

Derived terms

• DRIP (abbreviation)