𝑑
The Daily Capital
INVESTING 101 · Lesson 109

DRIP: how reinvesting dividends compounds faster

Daily Desk · Editorial5 min read
Take your dividends as cash and they trickle out. Reinvest them automatically and they compound into one of investing's quietest superpowers.

When a stock or fund pays you a dividend, you face a small choice with a big long-term impact: take the cash, or reinvest it. Automatically reinvesting is called a DRIP, and over decades it's a compounding machine.

— Educational, not financial advice.