Ken French explains the concept of homemade dividends. The basic idea is that you should be indifferent (all else equal) between owning a stock with a 5% dividend yield and a stock with a 0% yield where you sell 5% of your holdings annually.
This is actually a very important concept, and one not well understood by many stockholders. Case in point; the recent concerns of some local shareholders of Progress Energy who have expressed concern about the dividend yield on Progress stock declining after its merger with Duke Energy.
Side note: any students who have taken MBA 521 know this well.