DRIPs use the dividend payments you collect from a company to automatically buy more shares instead of giving you the cash.
And DRIPs have three distinct benefits...
But DRIPs keep you disciplined. They let you accumulate shares over time at a moderate pace.
Must See: This Great Depression-Era "Secret" Helped Transform Two Teachers into Millionaires. Read more...
That way you don't end up rethinking a quick, emotion-based decision you made with your investment.
With DRIPs, some companies allow you to reinvest dividends directly with them, without using a broker.
These no-fee DRIPs remove transaction fees, which can be as much as $9.99 per trade.
That means more money for investors.
If you invested $10,000 in Johnson & Johnson (NYSE: JNJ) stock on Jan. 1, 1995, and reinvested the dividends, your investment would now be worth $118,134.
And this is just one powerful example of how DRIPs can increase your wealth.
For 2017, we made a list of the seven best dividend stocks to buy. Start building your long-term wealth by reading it, right here.
Follow Money Morning on Twitter and Facebook.
[mmpazkzone name="end-story-hostage" network="9794" site="307044" id="138536" type="4"]