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Dividend Yield
Capital Gain
Earnings/Share
Dividend

Dividend Reinvestment Plan
Term category: Stocks
In 10 words or less:  A plan that allows investors to reinvest their dividends.

Definition: A dividend reinvestment plan (DRIP) allows investors to use their dividends to buy more shares of stock.

StockJargon Advice: By reinvesting dividends, investors can enhance their long-term value creation.  Over time, these dividends will add up considerably through compounding.

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Related Books

Wall Street Journal Guide to Understanding Money and Investments by Kenneth M. Morris
Investing for Dummies by Eric Tyson
Automatic Millionaire by David Bach
One Up on Wall Street by Peter Lynch

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