When you own stock in a company, you may have the option to participate in a dividend reinvestment program (DRIP). A DRIP automatically reinvests your shareholder dividends in more shares of the same company's stock. When you are due a dividend, you are issued more shares of stock instead of a cash dividend payment. In some cases, the issuing company will cover the broker's fees and may even provide the additional shares at a discounted price. DRIPs also have some advantages similar to those of dollar cost averaging plans. Your investments are made periodically so that you can take advantage of fluctuations in the market and hopefully achieve an overall lower average share price than if you made a one-time investment.

Link to todays G&M Investor Education article on DRIPs...

http://tinyurl.com/yh4j5rg

Also includes list of Canadian companies offering DRIP via link.

It is a program offered by some investments where your dividends are automatically re-invested. Some of the income ETFs have started to offer a DRIPs option. The basic idea is that it saves you on having to pay commissions to acquire more of the ETF.

Cool..
I'll have to study that CIBC Mellon site more..

Thanks Orestes04!!

Dividend ReInvestment Plan

"A dividend reinvestment plan (DRIP) is an investment program offered to shareholders by certain corporate securities issuers. Shareholders who participate in the plan reinvest their cash dividends and buy additional shares of the company instead of receiving a cash payment".

SOURCE: http://tinyurl.com/yblu3fx

I was checking out http://www.getmoneyenergy.com and noticed that the blog owner talks about Drips... which is an investing term...

What is a drip?