It is sound investment advice that investors always reinvest their stock dividends. Reinvestment of dividends is usually easiest when investors sign up for a dividend reinvestment or direct stock purchase plan offered directly from the company. Instead of receiving dividends directly, investors are able to reinvest their dividends directly in the company allowing compounding with having to pay fees associated with brokers. Some companies offering DRIPS, aka, Dividend Reinvestment Plans charge or free while other companies do not.