This information notes whether investors can automatically reinvest dividends paid in the company's shares. This field will have a value of Y or N; Y indicates the company does operate a DRIP, N indicates it does not. This information is also listed in the Ownership section of the Stock Detail.
Benefit
Companies with DRIPs may be good choices for beginning investors who are first starting to buy stocks, since these are generally well-established companies. DRIPs are generally meant for long-term investors who will hold a stock for a number of years.
Origin
Morningstar receives this information from Northstar Financial, Inc. This information is updated monthly.