DRIPS, that is, Dividend Reinvestment Plans, present a good way to increase returns on your investments and is one of the popular Investment Strategies. This plan provides a built-in measure to check your spending received through dividends and in a way also give you a compunding effect. This also avoids unnecessary brokerage charges which would have arisen if you purchase fresh stocks from the dividends received. Moreover, sometimes, the amount of dividend received by you may be less than the amount required to buy even one share of that particular company. There is another advantage too: most of the companies who allow DRIPS also allow owners of their stocks to purchase some additional quantity of stocks. this also makes DRIPS an attractive way to accumulate stocks of companies.