What about DRIP stocks?

[Zakdesign]

I find a website that talks about DRIP stocks as an easy and Cheap way to get started in the Market? What does everything think about them

[Ms_Margaret]

A DRIP or a dividend reinvestment plan or a program, which is a stock investment opportunity a company directly, offers to its shareholders.

The companies usually encourage the cash dividend recipients to reinvest them in the company. The reinvestment of dividends not only benefits the company but also the shareholders themselves.

The reinvestment of dividends in form of company's shares creates a kind of domino effect on the investors' profits. It results in compounding of income. The dividend reinvested generates more dividends next year and the process of growth goes on.