DRIP Investing, Step by Step

Partial DRIP & OCP-Only Options

Some DRIP companies will allow shareholders to designate that only a portion of the regular dividends be reinvested, and the remainder paid in cash. Another interesting twist in some DRIPs is an OCP-only option , whereby dividends are paid as cash to the shareholder, but the shareholder may still make OCPs through the DRIP. For those who rely on dividend income (such as retirees), these can be an attractive features.

If these options appeal to you, check the prospectus and enrollment form of the company you're considering to see if they offer partial participation programs.

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