Count me among the anti-dividend crowd*.
1) Strategy selects "out of ideas" companies
2) Buybacks are more tax efficient and easier, so dividends are obsolete, and your managers haven't figured that out(!)
3) Forced tax realization - no good way to throttle withdraws to match spending
4) Companies funding their dividends with debt, destroying equity along the way, with interest!
5) Little or no protection from corrections
6) More safety is available from bond income (see 2008-9 dividend cuts and bankruptcies, also see GE)
7) Inertia and fear often keep these companies paying dividends even when better ideas arise or financial difficulties occur. Thus, dividends create risk for the company.
8) To an investor, retained cash in the company has about the same value as retained cash in their account from a dividend. Funds used to pay down debt or reinvest earn a return within the company. Dividend payment is a zero-sum activity.
9) It's 2018, not 1978. You can sell stock with a click of a button for only a few bucks commission.
*I'll make an exception for REITs, MLPs, and BDCs who get a sweet tax deal in exchange for returning capital as dividends (but the law is stupid anyway).
Sounds to me like you are talking about stock picking, which may or may not be what the op wants.
1) Sometimes yes, sometimes no. See Blue chips for Yes and (honestly) you have to do some searching for the good no companies. (They do exist though!)
2) More tax efficient... Sure will go with that one. Easier, not so much, but like Dividends, this kills the future investments plus often times is done when stock is riding high being a further drain on cash... (Other issues too but I'll keep it short.)
3) True. But in the end your gonna get taxed on any IRA/401k etc withdraws anyway so.....
4) This is true, and such stocks should be avoided. This point is why stock pickers need to do their research. (and get burned when they do not!)
5) ... So this is different from a non-dividend stock how?
6) Yup bonds = (Mostly) safe, but well, lets talk Puerto Rico shall we? Gotten you bond money back yet?
7) I can't disagree here. Fear of not doing the "norm" whether it be dividends, buy backs, <insert whatever here>, etc will do bad things to good companies.
8) Yup zero sum. But in theory (not always the case) the money could also be put in bad places. Can you imagine Coke investing say in say electric cars? Neither can I. It can (and often does) help keep priorities straight for companies. Invest in what you know to make money and give back the rest though buy backs and dividends.
9) Sir you are correct. Traders do it all the time, but yes, investing (and de-investing) in the market has never been easier!
Personally I do like the dividends and plan to make them part of my income when I eventually FIRE. If you are planning to live off them just be aware of the risks (only some of which have been stated here!) and how to deal with them so you will be prepared in case you need to touch your principle and shorten you dividend income.