Advertisement
Using a dividend reinvestment plan can help you grow your savings faster. Here’s how to set up a DRIP.
With a dividend reinvestment plan (DRIP), investors automatically reinvest cash dividends earned from a dividend-paying stock, mutual fund or exchange-traded fund (ETF) into more of the same shares.
You can set up a DRIP with dividend-paying companies or through an investment broker, usually at no cost, and you can opt out anytime. There are no fees or commissions when buying shares via a DRIP.
Example: “By using a DRIP to buy more shares of a dividend-paying stock over time, regardless of its price movements, Arturo took advantage of both compounding and dollar-cost averaging.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
You’ve reached your 40s, are mid-way in your career and realize you’ll never have a pension. Here’s how to...
Reverse mortgages do the job of freeing up income for house-rich, cash-poor Canadian seniors. But their terms are often...
The inflation reading gives some economists more confidence that the Bank of Canada will cut its benchmark interest rate...
Many parents loan or gift money to their adult children for real estate purchases. Here are the legal and...
Whether you want the highest interest rate or no service fees, these savings accounts will meet your needs.
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.
Have an RESP, now what? If you’re wondering how to withdraw that money to pay for school (or not),...
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
Falling U.S. inflation leads to rate cut certainty, Walmart’s strong quarter, Barrick beats Franco-Nevada for the gold metal, and...
