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Vince-
I know they get paid into your brokerage's cash account, but then you have to wait, especially in the early years, for enough cash to build up in order for it to make sense incurring a brokerage commission to acquire new shares. From what I understand about DRiP's the dividends are reinvested immediately in the form of more fractional shares and I seem to remember reading somewhere that this additional compounding, while not seeming like much, can have a big effect on your yield in the long run. I don't know, I could be remembering incorrectly.
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