Studies have shown that exercise can relieve stress and also reverse the effects of stress on the body. http://health.usnews.com/health-news/diet-fitness/slideshows/7-mind-blowing-benefits-of-exercise/2
Stress can manifest itself in physical symptoms and create a negative cycle with adverse affects on your overall health. Dancing on a regular basis can result in a deeper mind-body connection which can help you combat the effects of stress. A better awareness of the connection between mind and body has been a proven way to reduce stress.
Dancing also promotes a healthy chemical balance. Dancing has been proven to reduce levels of stress hormones and stimulate the production of endorphins which help the body relax and in cellular regeneration. More exercise results in more endorphins released by the body, which slows the effects of again and can reverse the effects of stress on the body.
Dancing is a great workout that is also fun. People who find an exercise they enjoy or much more likely to stick to it. That consistency is important for overall health benefits and stress reduction.