### Question
How does the law define dividend reinvestment plan?


### Answer
Under *26 CFR § 1.1012-1*, **dividend reinvestment plan** is defined as:

> any written plan, arrangement, or program under which at least 10 percent of every dividend (within the meaning of section 316) on any share of stock is reinvested in stock identical to the stock on which the dividend is paid. 

#### Citation:
  - *26 CFR § 1.1012-1*
