What is DRIP?

DRIP, or Dividend Reinvestment Plan, is a simple yet powerful investment strategy that allows you to reinvest your dividends automatically. Instead of receiving your dividends as cash payouts, DRIP enables you to purchase additional shares of the same stock or ETF with your dividend earnings.

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Why use DRIP?

DRIP is a strategy designed to help you grow your wealth steadily over time.

• Compound Growth: DRIP harnesses the power of compound interest. Reinvesting dividends can significantly boost your investment returns over time. As your holdings grow, so do your dividend payouts, leading to a compounding effect.
• Dollar-Cost Averaging: With DRIP, you invest a certain dollar amount at regular intervals, regardless of the share price. This strategy helps you buy more shares when prices are low and fewer when they are high, smoothing out your cost per share over time.
• Long-Term Wealth Building: DRIP is particularly effective for long-term investors. Over time, the reinvestment of dividends can significantly increase the size of your portfolio.

However, it’s crucial to note the risks as well as the benefits of using DRIP. There’s always a possibility that a company will eliminate or reduce their dividends, and DRIP shares may have more liquidity risk than those purchased on the open market. You also might not have the freedom and flexibility you get with other forms of investments, and you cannot guarantee profit from choosing to use DRIP as opposed to other investment plans or strategies.

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How do you get started on Webull?

You can now enable automatic dividend reinvestment for all dividend-paying equities that support fractional trading on Webull.

To get started, upgrade your Webull app to the latest version. Then, go to the Account page and hit the Settings button.

Please note: Currently, the DRIP feature is only available to a group of users.

Select Dividend Reinvestment Program.

Select symbols and confirm.

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