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 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 firm. levels of participation in a dividend reinvestment program suggest that stockholders are content with the amount of cash dividends that the firm is paying out. 7. Dividend reinvestment plans Dividend reinvestment plans (DRIPs) allow shareholders to reinvest their receiving cash dividend payments. The majority of large companies offer dividend reinvestment plans to their stoc Jividends in the stock of the firm paying the dividend. Dividend reinvestment dividend reinvestment program invests the dividends in ne An old stock participation in a dividend reinvestment program suggest that s A new stock 7. Dividend reinvestment plans Dividend reinvestment plans (DRIPs) allow shareholders to re receiving cash dividend payments. The majority of large companies offer dividend reinvestment plans dividends in the stock of the firm paying the dividend. Dividend re Low dividend reinvestment program invests the div High levels of participation in a dividend reinvestment program su is paying out