A bird in hand is worth 2 in the bush

Companies handing out dividends, especially growing dividends are good signs of companies generating free cash flow. This will also be reflected in capital gains for the stock as pe ratio expands.

Therefore, dividends and capital gains does goes together. Of course, there are exceptions, like Berkshire Hathaway. It does not give dividends but grows its free cash flow. Instead, the money is used to invest in companies paying dividends with capital gains.

Ultimately, what's important is whether the company can generate free cash flow and whether it gives back to investor through dividend or share buyback. Thus, corporate governance is important as some companies reward their management more than they deserved.