Investing in DRIPsDRIPs are offered by public companies that help investors to increase their stake holding by reinvesting their cash dividend. Investors can elect to partake in DRIPs bypassing the middleman with no commissions and brokerage paid to third parties.
|Younger Generations and DRIPs|
DRIPs are an encouragement for the young generations of investors. A few shares in their name and the dividends received can be reinvested thus increasing their future stake holding in a company. The future stakeholder can monitor growth and thereby build his/her personal wealth and portfolio.
A gift of a small amount of share units as birthday present is given; purchasing these shares will result in further reinvesting and leash a successful drive to investments in the stock market for the future.
Why to invest in DRIP
DRIPs help investors to increase their personal wealth and to build their stake holding in companies over long periods of time.
There are several merits to investing this way:
Advantages of DRIP
DRIPs are the best way to get started with a long term investment planning scheme, they help to earn easily, efficiently, and effortlessly comparing to direct share purchasing.
Investing in multiple companies that offer DRIPs to ensure diversification throughout shareholding is also an option to mitigate risk.