An Introduction to DRIPs

Dividend ReInvestment Plans (DRIPs) are a way for people to own dividend paying stocks directly from a company. Instead of dividends being paid out in cash, the money one receives from dividends is reinvested into buying more shares of stock. DRIPs are a very easy way to invest in the stock market, because many companies do not require much capital to open a DRIP account. You can buy stock directly from DRIP companies for as little as $25 per month.

This web blog is designed to give people an easy awareness to DRIP investing. In addition, in the next few months, I hope to give you all updates on various DRIP stocks and an experiment of DRIP accounts in action. This blog is designed for the everyday person in showing that it does not take a financial analyst or require thousands of dollars to invest and gain steady returns in the stock market. Although there is a certain amount of risk with any investment, I hope to demonstrate with this blog that DRIPs are an excellent investment option to a beginner or a nice additional balance to an already existing portfolio.

Sincerely,
The DRIP Investor