A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive dividends directly as cash; instead, the investor's dividends are directly reinvested in the underlying equity. The investor must still pay tax annually on his or her dividend income, whether it is received as cash or reinvested. Similarly income trusts and closed-end funds, which are numerous in Canada, can offer a distribution reinvestment plan and a unit purchase plan which operate principally the same as other plans.