Dividends are good because it is cash now. Some investors, tending to be institutional ones, don't like dividends. This is because dividends could be reinvested into projects that would generate positive cashflow and increase the stock price. It depends on what you want to do. If you bought corporate bonds instead, you would most likely get more then the dividend. If you hold the bond for the full term, you wouldn't have to worry about changes in price because you know the cashflows you are getting. On top of that, should the corporation go bankrupt, you would have first claim to its assets as a bond holder, instead of getting the leftovers as a stock holder. It depends on what your trying to do, but for money now, bonds might be a better choice.