Need help with this dividend report(Vanguard fund)

[FishHooks]

Vanguard Dividend information

I was wondering if anyone can explain to me how to read this on the Vanguard 500 index fund. Also regarding dividends I was reading something in All About Index Funds and they suggest something along the lines of lumping your dividens together and then investing in one lump sum. It says something about its a tax pain to automatically reinvest the dividens. Any info on this would be help full too.