Amateur wanna be accountants like me can get in a lot of trouble when thinking they know something about "the books" when in reality I dont. Myself, I still want it to come back to profitability. I definitely do not want "return of capital" dividends. These things are complicated and way over my head. A company I am invested in per their own annual statement use these requirements in determining common dividend... "Pay out ratio of earnings", "projected cash flow", "future cash flow requirement", and "projected earnings". So clearly there is a meshing of the two, not just one. However with that being said I stick mostly with monopoly utility company preferred stock that have 30-50 times after tax profit dividend coverage and just clip my 6% and move on. I do not really need to understand the intricacies of financial accounting as I know they will pay, and pay every time.
That doesn't mean anything paying higher isnt a good investment, its just a concession I am not smart enough to really make an informed decision.