No, that's not the sound of your leaky faucet or the rainstorm outside. DRIP pertaining to stock investing stands for Dividend Reinvestment Plan. DRIPs are offered by corporations which allow investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. I strongly suggest reinvesting your dividends rather than receiving cash payments. You may only receive a fractional share, however if you have 30 to 35 years to invest until you retire, trust me your money will end up working for you instead you working for money!
Most brokers allow you to setup automatic dividend reinvestments. If your broker does not allow you to reinvest your dividends it is worth your while to transfer your shares to one of the following Stock transfer companies (See links below). Review each listing to determine if any of the companies that you own stock in offer DRIPs or Direct Stock Purchase Plans. Most plans require that you already own at least one share of company stock and a minimum monthly investment. This is an easy way to avoid commission fees!
Computershare - All Plans
American Stock Transfer and Trust Company - All Plans
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