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Dividend reinvestment programs (DRIPs) allow shareholders to automatically reinvest their cash dividends into additional shares of the company's stock, usually without incurring brokerage fees. This strategy enables investors to compound their returns over time, as they accumulate more shares with each dividend payment. DRIPs can be beneficial for long-term investors looking to grow their investment without having to manually reinvest dividends. Many companies offer DRIPs as a way to encourage shareholder loyalty and enhance investment growth.

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2mo ago

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