If i purchase some shares of a company and enroll in DRIP programs, when can I use the money in an account assuming I make money.?
2006-10-13 08:07:12 · 3 answers · asked by wildame12 1 in Business & Finance ➔ Investing
D.R.I.P. stands for Dividend Reinvestment Plan. Basically, if you enroll in a D.R.I.P., the company will reinvest any dividends back into the company.
Example: You buy 100 shares of XYZ Corp. and enroll in a D.R.I.P. The company declares a $1 / share dividend. The company will take the $100 from the dividend, and buy additional shares.
You are probably better off not enrolling in a D.R.I.P. if you plan on spending the dividend proceeds. The only way that you would have access to the money would be by selling shares.
2006-10-13 08:19:30 · answer #1 · answered by howardrourke 3 · 0⤊ 0⤋
The drip plan will reinvest your dividends in that company's stock. You can sell some or all of your shares (depending on the drip) at any time. Remember, you still need to report the dividends as taxable income, even though you didn't get the cash for them.
2006-10-13 15:10:13 · answer #2 · answered by jinenglish68 5 · 0⤊ 0⤋
You find yourself a drip and pay money to keep him :D
2006-10-13 15:15:02 · answer #3 · answered by Anonymous · 0⤊ 1⤋