The Motley Fool: Ask The Fool

Saturday 04 December 1999 19:02 EST

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I heard someone talking about "Drips" recently. What are they?

DD, Redcar

The Fool replies: They are Dividend Re-Investment Plans. Popular in the US, they provide a way for investors to reinvest dividend payments in more of the company's shares rather than taking the cash. And you don't pay any brokers' charges . British companies seem reluctant to introduce them, but the Fool thinks they are a very good idea.

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