The thing that I like about personal finance and the financial markets is that there is perpetually something out there that you have yet to learn.
For me, it is about Dividend ReInvestment Plans (DRIPs) or scrip dividend schemes. That is basically shares issued to you in lieu of cash dividends.
Now, what are the pros and cons of them? I’ve known about them before, but until Croesus Retail Trust recently announced that unitholders will now need to choose how they want to receive their dividends, I never actually have to know more about this and happily lived in ignorance.
Pros (compared to selectively reinvesting yourself):
– Automates your compounding (removes psychological fear to …