If I offered you an investment that pays 3.5% a year, and one that pays 12% a year, which one would you choose?
All else being equal, we'd be fools not to take the 12% offer.
Of course, "all else" is rarely equal... especially in a rising interest-rate environment. "Growth," as you'll recall, is the new "income."
That's why we need to look well beyond yield to evaluate a dividend payer, and focus on total return.
The first company we'll look at today, for example, will pay you $12 a year for every $100 you invest in its stock. That certainly seems appealing.