There is no question that dividends are one way public companies return cash flow to investors, but statistics prove that float shrink is better for overall price performance as the stock of companies who shrink the float using free cash flow rise more then companies using the same amount of cash to pay dividends.
When interest rates are allowed to float free of central bank intervention, the happy consequence of such a market-driven price is that in reaching natural levels conceived in the marketplace, the supply of and demand for credit is equalized.