actually you don't need to buy companies that pay a dividend
companies make a profit and they must decide what to do with it usually they pay out part as a divi and the rest is retained if the company's return on equity is about 20% then you don't want the company giving you a dividend what will you do with the dividend? put it in a bank account earning 6 or 7%? of course not what you want the company to do is retain all profits and hope company will reinvest the retained earnings at a rate of around 20% theoretically price should equal value as the company increases its asset base it becomes more valuable and ultimately you get this back as a capital gain
the return on most of warren buffetts companies is higher than 20% so he prefers not to pay out a divi and that is the way it should be
my advice is just put your money into a company with a high return on equity and hold it for as long as possible
