For all the dividend investors out there do you DRIP (dividend reinvestment plans) or take the cash and use it as you see fit? As a relatively young person I tend to DRIP everything and accumulate more shares in stable companies. As I receive many different monthly and quarterly dividends it compounds nicely by adding more shares. As long as the dividend stays constant or is raised the next month or quarter depending on payment frequency I will then receive more income from each investment.
Market data suggests that dividend stocks are much more stable and consist of the majority of gains in the stock market's history. I have heard how things can become overvalued and why people prefer to use the cash for more undervalued stocks and respect that philosophy as well. Unless you are living off the income and retired it seems that reinvesting into the market one way or another is the best option for building more wealth.
What do you think is the best strategy? Do you DRIP, take the cash and run, or a combination of both?