Yes, dividends count as a valid source of income and that’s a reason to own Coca-Cola. However, appreciation of a publicly traded stock is fine too, better even. When a publicly traded stock goes up, you can sell some stock and the money is just as good. Furthermore you’re paying less income tax since it’s capital gains, and you get to decide when to pay taxes on the gains.

This is why stock buybacks are better in some ways than dividends for returning money to shareholders.

Long term capital gain taxes are lower than dividend taxes which are taxed as income, no?

dividends can also be taxed at long term gain rates if the stock was held for some period of time before hand (see qualified dividends)