Many DRP's also allow the investment of additional cash from the shareholder. The DRP is usually administered by the company without charges to the holder. When two or more averages or indices fail to show confirming trends. Indicated Yield represents annual dividends divided by current stock price. The number of shares often is determined by a weighted average of shares outstanding over the reporting term.
Some plans provide for the purchase of additional shares at a deiscount to market price.
Dividend reinvestment plans allow shareholders to accumulate stock over the long term using dollar cost averaging. Inc. All rights reserved.