Argument on tax effects of dividend is not entirely relevant to Malaysian investors due to different tax system.
“Actually dividend considerations should be given the least, not the most, weight by those desiring to select outstanding stock.” – Philip A Fisher
“Worthy of repetition here is that over a span of five to ten years, the best dividend results will come not from the high-yield stocks but from those with the relatively low yield.” – Philip A Fisher
In a way I cannot entirely agree with Philip Fisher in his view on dividend. I always like to invest in company with opportunities of growth, financially strong with net cash and that distributes dividend consistently. By receiving dividends periodically, I can be patient even when the market falls for a long period of time.
Without dividend, I am not sure if I can maintain the discipline to hold on to good stocks in an economy downturn. It is such "discipline" (plus knowledge in the company) that ultimately decides our investment outcome of gain or loss.
Summary of Common Stocks and Uncommon Profits
by Philip A. Fisher