RE:Why Dividend Yes it is a challenge for management to decide and balance this dilemma, mostly because of investor pressures to pay dividends... however according to Warren Buffett, dividends most often, harm a company more than helps, as to total return on investment... just look at the ATH chart that does not pay a dividend.
The Buffett reasoning is that the div money is of better use left in the company, and a simpleton math formula would be in the case of WCP that pays $0.73 per share $430 Million per year... what would happen to the share price if that money was used to buy back share or make to company stronger when it trades at a 5.77 P/E ratio... possible .73 X 5.77 P/E... therefore a share price potential being up to $4.21 per share higher than now,,, and that's why the ATH chart and total return on investment is so much better.
Berkshire Hathaway never pays a dividend.
hope this helps
re;
Dividend 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.