Dividend Reinvestment Plans (DRIPs)
A DRIP is a convenient means for shareholders to invest in a company long-term in order to increase future earnings.
A DRIP offers a facility for shareholders and employees to elect to use their cash dividends to invest in more shares. Shares are purchased in the market when dividends are paid and added to the individual's shareholding.
We have successfully operated DRIPs and other re-investment schemes for shareholders in over 35 FTSE companies across a wide range of industries.
Benefits include:
- No ongoing cost to the company
- Reduces the cost of producing and mailing out small dividend cheques
- Reduces the risk of lost cheques
- Encourages the shareholders to build up their holdings in your company and become long term investors