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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (3770)	2/12/2010 8:33:42 PM
From: chowder	1 Recommendation Read Replies (1) \| Respond to of 34328

A DRIP within a brokerage account doesn't have anything to do with the companies that offer DRIP's. The brokerage firm does it to keep your business. I own Realty Income (O) and they don't offer a DRIP. However, my brokerage firm will reinvest the dividends as though it is a DRIP. In fact, we call them DRIP's in a brokerage account when in fact they aren't. The brokerage firm is merely reinvesting the dividends for you (as though it were a DRIP). I use the term DRIP because I don't know what other word accurately describes the process within a brokerage account. The brokerage firm will even reinvest dividends/distributions from closed end funds. None of them offer DRIP's as far as I know. So, although similar in practice, they are two different entities.