Many mutual funds will allow you to reinvest dividends as a simply a repurchase of stock in that same fund when dividends are paid automatically (I'm thinking of Fidelity's specifically because that's what I use), but depending on your situation, you might want to consider investing in bonds with certain sized, regular coupon payments instead.

Any investments requires some type of education. Educate yourself before making any investments. Learn what best fits you. Do you like taking your chances, gambling on the stock market? Do you life safe? Do you want to pay someone to invest for you? Do you want to do it by yourself? I say Pros, Cons, read everything than make a decision. I know that everyone has their opinion and believing strongly on what they invest in, but it might not be for you. Remember, everything cost a FEE. Calculate the FEE in numbers and not in percentage.

Any dividend-bearing investment can be set to reinvest.

You should be looking on some basic books about investing.

A mutual fund.

I'm looking for a type of investment that allows me to put my money in and then reinvests the dividends or returns back into the investment.

This investment isn't for retirement, its to supplement my income. ANy thoughts on what I should be looking at?