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Investors also need to be aware that the. A dividend reinvestment plan (drip) is an investment strategy in which investors reinvest their cash dividends in the company. Dividend reinvestment plans (drips) automatically reinvest cash dividends in the stock. Drips are a way to build up additional shares over time for a potential payoff in higher capital gains. Drips help shareholders.

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Dividend reinvestment plans (drips) automatically reinvest cash dividends in the stock. Drips are a way to build up additional shares over time for a potential payoff in higher capital gains.