Schwab will reinvest dividends. That is different from the DRIP.
Reinvest dividends just means that schwab will buy the stock for you the day after the dividend shows up. For this schwab uses the price at 10am.
The DRIP is a completely different mechanism. With the DRIP EPD calculates the share purchase price as an average of some days before the dividend date. It then gives a 5% discount and issues stock to you. This stock is then given to your broker INSTEAD of the dividend.