Drip, drip, drip … that’s the sound of a leaky faucet, ugh. Time to call the plumber. But when is a drip ever a good thing?
When it’s a Firstrade no-fee DRIP!
Firstrade is among the few brokers offering a Dividend Reinvestment Plan (DRIP) and it’s a great way to reinvest your money! You can sign up for free and automatically accumulate additional shares every time you receive a dividend from a particular stock or multiple stocks. You can enroll either a single eligible stock or all eligible stocks in your portfolio, your choice.
Not only can you profit from the growth of the stock, but you can also reap the benefits of compounding returns. All without having to place an order or worry about commissions—it’s an automatic and seamless process for investors. Here’s how the Dividend Reinvestment Plan works:
When you receive dividends from a stock in your portfolio, Firstrade will automatically purchase additional shares of the stock using the dividend amount. For example, if stock XYZ was trading at $10 a share and you receive $25 in dividends, 2.5 shares of XYZ will be added to your positions.
Over the long haul, financial experts cite participating in a DRIP as a great way to increase the value of an initial investment by allowing the compounding returns to do much of the work. Investors can use a DRIP for most stocks and ETFs offered by Firstrade.
Firstrade customers now have even more reasons to consider adding a DRIP to their portfolios. Firstrade just recently launched its completely redesigned trading app—and you can now monitor your DRIP activity right from the app!
Sign up and learn more about Firstrade’s Dividend Reinvestment Plan at our website.
You’ll be glad you did.