What are some examples of drip stocks?


Quick Answer

Examples of companies that provide DRIP stock options are Budweiser and AT&T, says DripDatabase.com. As of 2015, this website has more than 1600 companies listed as offering DRIP stock options to their current stockholders, a number which continues to grow as more companies expand and seek to gain shareholders directly.

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Full Answer

A DRIP stock is a stock option provided by various companies that allows current stockholders to purchase more stock directly from the company itself, as opposed to using an outside broker. According to GiveAShare.com, this option is generally offered at little or no cost to the stock holder. DRIP stands for Dividend Reinvestment Plan, which refers to the thought that stockholders are more likely to reinvest their dividends within a given company if the option exists to do so at a less expensive rate. The plans are also referred to as DIP, or Direct Investment Plans.

Many of the most successful companies in the United States and throughout the world offer DRIP stock options to their shareholders. DRIP plans are favored by many investors for their low cost and steady dividends, and Directivesting.com even cites them as a sound option to use when introducing children as young as 8 years old to the idea of stock investments.

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