Dividend reinvestment plans (DRIPs)

                                                          Dividend reinvestment plans, DRIPS for short, are the single best way to take advantage of compounding magic.  Most companies that pay a dividend will allow you one of the following choices:

       ·         reinvest that cash for partial shares

       ·          receive a check

Here's the magic when you take more shares in the company instead of cash…

  The next time a dividend is paid (usually every quarter) you'll also get a dividend on these newly acquired shares. You can win four ways here….

·         your money will compound four times a year

·          the company will usually increase the dividend over time

·         the stock can go up in price, including your partial shares

·          you can usually avoid brokerage fees on these plans

  This is the closest thing to free money I've ever learned.  Also, keep these plans in tax advantaged accounts to reduce income taxes.  Please share your money saving discoveries.  Finwiz.