**Firstly**, investors love dividend paying company as dividends are proof of making profit (sometimes dividend can be paid out of past profits too)  

**Secondly**, investor cash in hand is better than potential earnings by the company by way of interest. Investor feels good to redeploy received cash (dividend) on their own  

**Thirdly**, in some countries dividend are tax free income as tax on dividends has already been paid. As average tax on dividend is lower than maximum marginal tax; for some investor it generates extra post tax income  

**Fourthly**, dividend pay out ratio of most companies don't exceed 30% of available fund for paying (surplus cash) so it is seen as best of both the world

**Lastly**, I trust by instinct a regular dividend paying company more than not paying one in same sector of industry