A year ago, I wrote an article about a possible dividend bubble.

Dividend yields were falling, I wrote, as low interest rates on bonds pushed investors into dividend-paying stocks. That set up a dangerous environment of lofty valuations. 

In some cases, that's still true. But there's more to the dividend story than I once thought.

In this video, Fool analyst Matt Koppenheffer and I discuss the dilemma, which has been a long-running debate between the two of us.

Fool contributor Morgan Housel owns shares of ExxonMobil. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.