I agree with “Manageable debt taken on for the right reasons is necessary and a part of business life.” Although most of those crying out for a dividend are also those who cried out about the amount of debt.
However, I don’t agree with removing cash out of the business from company profits to pay dividends when it could be used to reduce the debt. A company’s value is reduced by debt (simply, value is based on assets, revenue generating capacity and cash… minus debt.) You want to remove cash and not reduce debt. That devalues the company. Most companies go down on ex-div day by roughly the amount of the dividend. If you keep cash in the company, it is worth more, or if you reduce debt, it is worth more.
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