When invest in stock market, why are people so hard up over dividends?

[Greenrookie]

My 2 cents worth.

Company need not be debt free or little debt to give out dividends. There is some truth in companies that give dividends consistently are already past the fast growing phase where they need a lot of capex to expand.

In this category of fast growing companies, valuation by means of dividend yield is illogical. But as with high growth fast expanding companies, the risk is high and returns if u get it right immense.

Then u have another category of companies at matured stage or slow growing stage, the management might be wiser to return cash that could not otherwise generate the growth through expansion.

Also, depending on the nature of business, e.g. High capex business, like construction and airlines, even telecom, they generate high cash flow through high gearing and return part of the cash back as dividends. I am not sure if a business can run or expand properly with cash only.

So in short, different valuation for different businesses at different stages. And dividend yield is one appriopate valuation although not the only one. It is a valid valuation and one where some are competent in, which in your words mean "hard up"