DRIPs turn every dividend into more shares — often fractional — with no commission at most brokers. Over decades this quietly boosts the effect of compounding on dividend portfolios.
The trade-off: reinvested dividends are still taxable in a regular brokerage account, so the tax bill arrives even though no cash landed in your bank.
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Open Decision Lab →Frequently asked questions
Should I use a DRIP?
For long-term buy-and-hold in tax-advantaged accounts, almost always yes. In a taxable account it's still often worth it if you don't need the cash.