This is a vast topic, not as simple as it sounds, and there are completely different schools of thought and very different points of view here, each having merit.
Certain businesses need capital for business growth or even for their operations, they don’t pay dividends, example Dmart. Some businesses need less capital, so while they keep some aside, they distribute a good portion of their profits to investors, cash rich companies from FMCG and IT. Some businesses may not grow beyond a point for any reason for a particular period, so they may announce a dividend instead of keeping cash, and some businesses while done with their capex for a period of time, may start giving dividends for the first time or may increase the payout. And PSUs give good dividend, one cited reason is government itself owns major stake in the company.
Investors who have bought such high dividend stocks a couple of decades ago, with stock splits and bonuses, even if the price has not moved, they have made good profits with dividends.
Dividend investing can still be a concept to look at, but not from a growth and share price appreciation perspective, but as it is, and acknowledging the fact that it could turn out to be an opportunity cost.
I have some positions in dividend companies, not yet came to the decision of increasing their positions.
On a side note, a psychological one, while the price appreciation is real mathematically, it is still notional, as the shares are not sold, but a credited dividend is absolute, so I guess it makes all happy, just like as it does me.
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