# Dividend Reinvestment (DRIP)

*Saving & Investing — Finicade finance glossary*

Automatically using the dividends a stock or fund pays to buy more shares, instead of taking the cash. It quietly compounds your holding over time — the same snowball as compound interest, applied to equities.

**Also known as:** drip

**Related terms:** [Dividend](https://finicade.com/glossary/dividend), [Compound Interest](https://finicade.com/glossary/compound-interest), [Dollar-Cost Averaging](https://finicade.com/glossary/dollar-cost-averaging)

Source: https://finicade.com/glossary/dividend-reinvestment