I like dividend stocks for a couple of reasons, firstly instead of automatically investing the money back into the stock it came from it allows me to decide myself where to put it and secondly because it does motivate you somewhat if you see money coming in, even if other parts of your portfolio are going down.
I do similar to TheRaven except that I skip step 1. I simply add whatever money I have in dividends to the pool of money from which I make new purchases, then I check my watchlist for whatever seems like the best buy at the time and invest where I think it makes most sense.