You can agree with it if you want, but it won't help you in making a good financial decision.
Consider this, all else being equal (hypothetical spherical chickens in a vacuum scenario):
You bought a stock @ $10 and it pays a $0.60 annual dividend (6%). Sometime later, the stock rises to $20, still paying a $0.60 annual dividend. If you invested $10,000 originally, you get $600 annual divs. The stock would now sell for $20,000.
You can measure your dividend % on the original purchase price at 6%, or at the current price and get 3%.
Now lets say you can buy another stock with similar outlook, that pays a 5% dividend at its current price. If you consider you are getting 6%, you won't trade stocks. But you could get 5% on your entire amount if you traded. So the new stock would provide 5% on $20,000, which is $1,000 annual div.
$1,000 is more than $600. Looking at a yield based on original purchase price, rather than current alternatives clouds your thinking, and would cost you $400 a year in this example.
-ERD50