Dividend reinvestment plans (DRIPs) enable stockholders to use dividends received on a firm's stock to acquire additional shares-even fractional shares-at little or no transaction (brokerage) cost.

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Dividend reinvestment plans (DRIPs) allow stockholders to reinvest their dividends into additional shares, often with no transaction fees or at a minimal cost. This enables investors to compound their returns over time and increase their ownership in the company.

Dividend Reinvestment Plans (DRIPs) Enable Stockholders to Use Dividends Received