Don't be fooled just by the higher amount of payout and ignore management's plan for the company
When a long-term investor is looking to buy stocks, there are many factors he/she should take into account. And one of the key points to focus on is dividend yield.
The reason being, overall return from a stock is a combination of capital appreciation and dividend yield. For investments with 15-20 years of time-horizon, dividend yield can make up for 40-50 percent of total return from a stock.
A word of caution. There is another side to high dividend payout. Don't be fooled just by the higher amount of payout and ignore the management's plan for the company. Because sometimes a company can give high payout if it fails to deploy capital in business, which could be a bad sign.