A Dividend Reinvestment Plan (DRP) allows investors to choose between cash dividends or automatic reinvestment in additional shares. Many ASX-listed companies offer a slight discount on current share prices to encourage participation in DRPs. This program helps compound returns and reduce transaction costs, benefiting long-term investors. Enrolling in a DRP is simple, either through a brokerage or directly with the company, with options for full or partial reinvestment.