I think they're saying if you're going to need the money in that year, don't reinvest the dividend.
You only pay additional taxes on the increase in value. The bigger reason not to reinvest a dividend when you need the income is it messes with your first in, first out cost basis.
For example, if you own $10,000 of a position you've had a 100% gain in.
- take the $300 dividend, only pay qualified dividend rates
- reinvest the dividend, then sell $300 of your position. You're paying capital gains taxes on the increase in value of your earliest position. You also still owe the tax on the dividend you received, increasing your overall tax bill.
I don't like how vague the article is, that's my only interpretation.