Over the course of your life, paying less in taxes will save you an incredible amount of money. Trends are very hard to predict ahead of time and most investors don't realize the trend until it has already happened. In hopes of the trend continuing, they still buy the stock. After all, no trend lasts forever. I can't stress reinvesting your dividends and capital gains enough.
Many people receive a quarterly dividend check and simply spend it.
Rather than doing this, I have found it very beneficial to take that money and put it back into my investments. Doing so speeds up the process of compounding. Investing opens up the opportunity for regular people to earn a nice return on their investments. Unfortunately, many people lose focus on what they are saving for after they begin to invest. For example, I know someone who received a cash gift that he invested with the intention to save for college.