Two more reasons to love dividends: consistency & commitment. From a great blog you should read regularly — the Reformed Broker:
Executives believe that maintaining the dividend is on par with investment decisions such as capital spending, whereas they view buybacks as something to do with residual cash flow after the company has made all investments that are appropriate.
Meaning, once committing to a dividend level (and increase strategy) it’s a consistent multi-year decision rather than re-asking “how did the business do?” each and every year. Dividends are part of the plan.
Also important, is aligning your own incentives to those of executives. Why not align your thinking to that of the executives that run your companies?