Is a good share one that pays out its earnings in dividends?
(Image source: http://zewt.blogspot.sg/2007/09/tax-free-dividends.html)
There are two goals in investing: Dividends or Capital Appreciation, both of which will provide your return on investment. A share paying out a 5% dividend and another whose price is growing at 5% a year is almost the same in my opinion, it is just whether the company decides to reinvest the money in itself or pay it out to its shareholders.
In my opinion, the important part which decides whether a company is better off paying out its dividends or reinvesting in itself ......