Dividends option in ELSS

[Matrix]

1- How dividend is paid out in ELSS schemes (dividend option)?

Say you have 1000 units at NAV Rs. 100 and if AMC declares 50% dividend then you will get -
Dividend = 50% * (No. of units) * (initial face value of the fund unit, It's generally Rs.10)
Dividend = 50% * (1000) * (10)
= 5,000

2- Which option is good for ELSS - Dividend option or Dividend Reinvestment Option?

Its upto you what you want. I go for dividend option. Its good if you get money early.