No. of Recommendations: 1
DRiP - Dividend Reinvestment Plan

Often associated with company plans whereby you can purchase shares of stock directly from the company. Now most plans are administered through a Transfer Agent like Computershare, JPMorgan Chase or Wells Farge Invest Direct.

A company like Aqua America (WTR) will allow you to buy shares from them (rather than a broker) and keep track of them for you. When quarterly dividends are paid, if you choose, they will automatically reinvest the dividends in the same company. Know that you will still have to pay taxes on the income (dividends) in the year they are paid but you will grow your investmentand increase your shares over time.

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