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How a Dividend Reinvestment Plan (DRIP) Works

A dividend reinvestment plan (DRIP) allows investors to automatically reinvest the cash from a stock's dividend payments. Watch this video to learn how to enroll in a DRIP.
April 21, 2026Beginner

How a Dividend Reinvestment Plan (DRIP) Works

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This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The securities, investment products and investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

For illustrative purpose(s) only. Individual situations will vary. Not intended to be reflective of results you can expect to achieve.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

All ETFs are subject to management fees and expenses.

Dividend focused funds may underperform funds that do not limit their investment to dividend paying stocks. Stocks held by the fund may reduce or stop paying dividends, affecting the fund's ability to generate income.

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