DRIPs are dividend reinvestment plans. Companies often have DRIPs, which automatically reinvest dividends by buying more shares for an investor. When you rely on a DRIP, there are no commissions or brokerage fees for the shares that you buy, you can get discounted share prices, and you can buy fractional shares, which brokers usually don’t allow. DRIPs can make reinvesting your dividends easy, cheap, and consistent.