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7. Dividend reinvestment plans Dividend reinvestment plans (DRIPs) allow shareholders to reinvest their dividends in the company by purchasing additional shares instead of recelving cash dividend payments. The majority of large companies offer dividend reinvestment plans to their stockholders. These plans allow stockholders to automatically reinvest dividends in the stock of the firm paying the dividend. Dividend reinvestment plans can be classified as either old stock or new stock plans. dividend reinvestment program invests the dividends in newly issued stock. This type of plan raises new capital for the nrm lavels of participation in a dividend reinvestment program suggest that stockholders would be better served if the firm reduced its cash dividends 7. Dividend reinvestment plans Dividend reinvestment plans (DRIPs) allow shareholders to reinvest their dividends in the company by purchasing additional shares instead of receiving cash dividend payments. The majority of large companies offer dividend reinvestment plans to thelr stockholders. These plans allow stockholders to automatically reinvest dividends in the stock of the firm paying the dividend. Dividend reinvestment plans can be classified as either old stock or new stock pla dividend reinvestment program invests the dividends in newly issued stock. This type of plan raises new capital for the m An old stock s of participation in a dividend reinvestment program suggest that stockholders would be better served if the firm redu A new stock 7. Dividend reinvestment plans Dividend reinvestment plans (DRIPs) allow shareholders to reinvest their dividends in the company by purchasing additional shares instead of receiving cash dividend payments The majority of large compenies offer dividend reinvestment plans to their stockholders. These plans allow stockholders to automatically reinvest elhicande in the stock of the firm paying the dividend, Dividend reinvestment plans can be classified as either old stock or new stock plans High dividend reinvestment program Invests the dividends in newly issued stock. This type of plan raises new capital for the firm. Low levels of participation in a dividend reinvestment program suggest that stockholders would be better served if the firm reducealacash- dividends

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