Why DividendDividend or buy-backs and lowering of debt? This is the dilemma for every management. Some companies go for the Dividend because it's more stable and it is not affected by the market gyrations. In a down market almost all stocks regardless of dividend or not go down right across the board. At least the dividend-paying ones, give some consolation with a substantial dividend. Those with no dividend at all are double losers. So all in all I prefer a dividend -paying co.