It will be taxed as income unless you are in an IRA or have a Drip.
You really do not want your divs adding to your income for the year. It is best to play around with the divs inside an IRA to avoid taxes. But, if you do use the divs it is just like regular income and you will receive a tax form for it at the end of the year.
DRIP does not matter.
If you stock is in a regular account, it is 100% taxable at your current marginal rate.
Pick up your divi, this will rise over time.
Remember, buy where other are afraid, sell when other are greedy.
This is a screeming buy at the current time (IMHO).