drip investing

Drip investing, or Dividend Reinvestment Plan (DRIP), is a strategy where dividends earned from stocks are automatically used to buy more shares of the same company, rather than cashing out. This compounding process allows your investment to grow steadily over time without additional effort. It’s a hands-off approach ideal for long-term investors, as it reinvests earnings to increase your ownership and potential future returns. DRIPs often have low or no fees, making them an efficient way to build wealth gradually through consistent reinvestment of dividends.