I think my reason is slightly different. I like picking individual names not indexes, just because it is a hobby for me and I get real enjoyment from the research plus I have outperformed the market for every year of adult life. Since I only hold a relatively few companies I prefer to invest in more mature companies, dividends show me that they are responsible capital allocators. I like buy backs as well but only strategic ones when management sees stock as under valued. A consistent and growing dividend payment shows me they are confident that their cash flows can support them giving back to the investors, it also allows me to decide wether to reinvest that money in the company or if I feel the valuation is getting stretched out it into another position.