Good article here, about Beffett way: http://www.jztzp.com/a/52686.html
Why Buffett loves See's Candy? Because good cash income with less capital. But as small investor, we can't use the profit if the company doesn't pay out dividend, no dividend means no cash flow. So the way to get cash flow and continue to invest on market weakness, high dividend yield stock is the option.
Another, as market goes up and down, the paper profit is easily to be taken again, but with dividend, the return is realized regularly, no matter how price moves. So even price goes back to same level as years ago, we still get return from paid dividend.
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