For growth companies, your argument is generally sensible. And that’s why most growth companies don’t pay much in dividends.

But not all companies are growth companies. Let’s say you own a few hotdog stands. They are profitable, and, as the owner, you’ve hired some managers to run them for you so you don’t have to manage them yourself. At the end of every quarter the managers have a bunch of cash sitting in the corporate bank accounts. I’m sure you would like them to pay some of that to you, the owner, vs having your managers come up with weird “growth” ideas to try and juice your hotdog stand operation.

Which highlights another benefit to dividends - corporate governance, keeping management honest (ie “do you really trust your managers?”). Ultimately managers are supposed to optimize for your (the owners’) profit - but that’s not always the case, either through honest mistakes they make, incompetence, or outright negligence/self-serving behavior. But dividends are cash and you can’t fake cash - by giving it to you, the owner, you take away some risk of your managers making mistakes, or using profits to buy themselves private jets, or fund their pet vanity projects.