Dividend Reinvestment Plan

 A dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly dividends directly as cash; instead, the investor's dividends are directly reinvested in the underlying equity.  

A scrip issue is similar to a Dividend Reinvestment Plan, however, whereas a Dividend Reinvestment Plan reinvests dividend cash to purchase existing shares in the market to meet shareholder requirements (usually with a minimal charge), a scrip issue involves the issuing of new shares by the company, free of costs.