A dividend reinvestment plan (DRIP) allows investors to automatically reinvest their cash dividends into additional shares of the company's stock. This process helps to compound returns over time, as the new shares can also generate dividends in the future. DRIPs often come with no commission fees, making them a cost-effective way to grow an investment. Investors can typically enroll in a DRIP through the company's investor relations department or a brokerage firm. By participating in a DRIP, shareholders can increase their ownership in the company without needing to make additional cash investments, benefiting from the power of compounding.