What is DRIP investing?

One of the many ways to grow your investments is by reinvesting dividends. In this video, we explain what a Dividend Reinvestment Plan (DRIP) is and how it may impact your portfolio.

Key Takeaways

  • A DRIP is a dividend reinvestment plan whereby cash dividends earned on eligible securities are reinvested to purchase additional shares automatically and commission-free.
  • DRIP allows shareholders to reap the benefits of compounding and gradually grow their position over time without having to do anything.

DRIP not only allows you to participate in a company's growth on a regular basis, it also takes advantage of dollar-cost averaging (DCA) technique that averages out the price at which you buy stocks as they move up or down.

You can set up a DRIP for your entire account as well as for individual securities. Once you set up a DRIP, the cash dividend is automatically reinvested. 

To set up a DRIP in your TD Direct Investing account, contact an Investment Representative at 1-800-465-5463 or (416) 982-7686.

Ready to start investing on your own? 

We offer two services for self-directed investors: TD Direct Investing with a variety of platforms and advanced tools; and TD Easy TradeTM, a simple, streamlined, mobile-only, trading app.

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Did you know that you can enter the market even if you don't have a lot of money to invest? Dollar cost averaging is an investing technique that can help you do just that.

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