What are direct investment plans (dividend reinvestment plans, DRIPS, DSPPs, DRPs)?
In general, these plans will reinvest dividends to buy more shares of the company stock. What is even better, these plans give shareholders the ability to buy more shares directly from the company. That way the investor does not have to pay brokerage commissions (except for small service fees in some cases). Some plans require that dividends must be reinvested. Others permit partial dividend reinvestment or even allow no dividend reinvestment.
