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The Independent Online
I heard someone talking about "Drips" recently. What are they?

DD, Redcar

The Fool replies: They are Dividend Re-Investment Plans. Popular in the US, they provide a way for investors to reinvest dividend payments in more of the company's shares rather than taking the cash. And you don't pay any brokers' charges . British companies seem reluctant to introduce them, but the Fool thinks they are a very good idea.

If we publish your question, you'll win a copy of 'The Motley Fool UK Investment Guide'. Email UKColumn@fool.com or post to Motley Fool, 79 Baker Street, London W1M 1AJ.

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