Does A Dividend Investor Have More Options?

A company can choose to reinvest all its profits in the business or to distribute some of the profits to the shareholders in the form of dividends. Dividends gives us shareholders a cash flow regardless if the price of the stock goes up or down. A cash flow that is to our disposal to do with as we see fit.

I got a intresting comment from a reader a time ago, who argued that dividend investors through the cash flow from dividends have more choices than investors who buy companies that don't distribute their earnings. The number of options are grater for the dividend investor he argued.

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I agree, not surprisingly, with the statement, but what are these options that a dividend investor have? Shareholders of dividend companies can choose to do one of the following with the dividend they receive:

- Buy more shares in the distributing company. This option is recommended if the original investment was done right from the beginning and you have invested in a company with a stable earnings dividend history. A company that has distributed dividend over a long period of time tends to have an proven business model and strong competitive advantages that allowed them to grow large and remain viable for such a long time.

- Buy shares in another lower valued company of similar quality. The market will never be perfect and there will always be companies that due to irrational market concerns are undervalued relative to their fair value.

- Invest money outside the stock market - fine art and real estate are viable investment options. However, I believe that stock investing is by far the best form of investing for us who are employed and I will therefore for the foreseeable future have most of my capital invested in stocks worldwide.

- Cover daily living expenses or indulge in a little everyday luxury. Using the dividend for any type of consumption is not something I plan on doing in the near future, but the possibility is there non the less.

- Transfer the dividend to a savings account in anticipation of better buying opportunities - which I partially done recently. It's no secret that I and many others feel that the stock market is overvalued and that there are few buying opportunities right now.

In addition to financial instruments such as options and warrants dividends are the only way for a private investor to make money from a stock without selling off their shares in the company. 
The beauty of dividends is that they are passive and, in most cases, a recurring income. Can you think of any more options a dividend investor has compared to those how solely own shares in non-distributing companies?