If a company reduces the size of dividends to invest money, then make more profit, can't the payout increase?

If they cut dividends by 1%, then made 10% more profit because of the extra available for investment, for example? Is that why reducing dividends might not be a sign of poor performance, and dividends might not necessarily be a performance indicator?

I don't truley go by the dividend anyways. I'm in a value point of view so I look at earnings, Assets, debt, growth,. Remember (P)rice=(E)arnings x (M)ultiple. I tend to look at companies that dont pay a dividend. A big perormance indicator is the balance and income statement. To tell whether a company is selling cheap is: Assests double the liabillities, multiple 2x is equal or less than the multiple, account payables take up only 20% of company assests(dont want a company that lends to much of its money although its a custom to operate), steady earnings, postion in its market, and inventory. Also another key factor is to discount future earnings. This brings tommorow's value to today. It helps indicate whether a company is selling at a value or overvalue. I dont know if i'm any help considering i'm only 14 but i do read a lot so my techniques are reliable.

No company will drop their dividend , if there is any way of avoiding doing so. It can be the death Knell of a company