Dollar cost averaging,in which more shares are purchased at low prices than at high prices,is one advantage of dividend reinvestment plans.

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Dividend reinvestment plans allow investors to use the dividends to purchase more shares of the same company, regardless of the current price. By reinvesting these dividends regularly, investors can benefit from dollar cost averaging, which can lead to more shares being purchased at lower prices and fewer shares being purchased at higher prices, ultimately reducing the average cost per share.

Dollar Cost Averaging,in Which More Shares Are Purchased at Low