A company that is still growing rapidly usually won't pay dividends, because it wants to invest as much as possible into further growth.
However, for a mature company that doesn't need to reinvest as much in itself, and that has stable earnings, there are several reasons why issuing dividends can be a good idea eg: many investors like the steady income associated with dividends, so they will be more likely to buy that company's stock.
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IAM Business For Generations, page-204
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