Yes, that certainly can be true, but with stock investing, there are no guarantees. Most companies that pays dividends (and not all of them do), have dividend reinvestment plans, or DRIPs. Some of them require that you already be a stock owner, but many of them will let you make your initial purchase thru the DRIP as well. Just go to the website of the companies you're interested in, and go the investor relations section. You can read the latest annual report, the prospectus, and download the forms to fill out to get started.
To get familiar with this, go to the websites of major corporations such as Exxon-Mobil (XOM.com), GE (GE.com), or CSX railroad (csx.com), or Proctor & Gamble (pg.com), or Wachovia Bank (wb.com). And of course there are hundreds of others.
You may have to pay a modest set-up fee, like $10. These are definitely good deals for the average person. And when it comes time to sell all or part of your holdings, the sales fees are very low, too.