Dividends aren't strictly necessary - stock buybacks have the same effect of returning money to those who want it, while being superior (in terms of taxes) for those who would just reinvest dividends anyway.
But its not real money in the share owners hands buy backs are bad you need to reform taxation of dividends make scrip dividends taxfree if reinvested.
Of course the IB make a nice chunk of change for arranging the buy back
Of course the IB make a nice chunk of change for arranging the buy back