[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:dividend-reinvestment-plan":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Fdividend-reinvestment-plan.md","Dividend Reinvestment Plan (DRIP)",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-dividend-reinvestment-plan","Understanding Dividend Reinvestment Plan",[16,17,18],"p",{},"Instead of receiving cash, a DRIP reinvests each dividend into additional shares, often including fractional shares and sometimes without commissions.",[16,20,21],{},"Reinvesting dividends lets compounding work over time. In a taxable account, reinvested dividends are still taxed in the year they are paid.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"investing","A program that automatically uses dividends to buy more shares.","md",[],{},true,"\u002Fterms\u002Fdividend-reinvestment-plan",[35,36,37],"dividend","compound-interest","cost-basis",{"title":6,"description":28},"terms\u002Fdividend-reinvestment-plan",[41,42,43],"A DRIP reinvests dividends into more shares automatically.","It harnesses compounding.","Reinvested dividends are still taxable in taxable accounts.","OHgT_zB_JKaO6TRxsXmJ1YD8tb2DU_3aFp_iiEiw1Ew",[46,50,54],{"title":47,"description":48,"path":49},"Compound Interest","Interest earned on both the original principal and on interest already earned.","\u002Fterms\u002Fcompound-interest",{"title":51,"description":52,"path":53},"Cost Basis","The original value of an asset for tax purposes, usually the purchase price plus fees.","\u002Fterms\u002Fcost-basis",{"title":55,"description":56,"path":57},"Dividend","A share of company profits paid to shareholders, usually in cash.","\u002Fterms\u002Fdividend",1793374004968]