DRIP Stock Investing: How to Collect More Stock on Autopilot

Do you want to reinvest your dividends without having to think about it? Then, DRIP investing may be the tool you need. Learn everything on how to reinvest your dividends automatically with a DRIP plan.

DRIP Stock Investing: How to Collect More Stock on Autopilot

When you buy dividend stocks, companies pay you periodically for holding their shares. A dividend is a way for the company to say thank you for investing in us, and dividends mostly come from the company’s profits in the previous year.

What Is DRIP Stock Investing?

How Does DRIP Stock Investing Work?

A dividend is a return to shareholders on their investment. It’s usually in the form of cash payment that can be paid through check or deposited directly to the shareholder’s account

 The companies keep good records of the percentage of share ownership. Like the words suggest, fractional shares are a fraction of a whole stock. 

Fractional Shares

Pros of DRIP Stock Investing

- Dollar-cost averaging - Immediate reinvestment - Lower commissions

- Taxation - Non-diversification

Cons of DRIP Stock Investing

If you would like to benefit from DRIP investing, you need to have at least one share in company stock in your name. You can then get in touch with a broker to find out if they have a DRIP investment program. 

How to Start DRIP Stock Investing?

There are several places where you will find DRIP stocks to add to your portfolio. First, you may want to check out the dividend-aristocrats, companies with a history of increasing their dividends every year for at least 25 years.

Best DRIP Stocks With No-Fee DRIPs