"his internal rate of return will be significantly lower taking into account the years he got no dividend."
This would be true of both situations, since we are talking about the point forward after being at RV and paying dividends.
This exercise is really pointless though. I am not (perhaps as a fault) the type of investor who tries to maximize every last percentage point. Let's just say if this goes to RV and starts paying dividends, I will be happy with that result. It would be a huge win. I would definitely reassess from there.
He has a $25 face share stock selling for $25 on the open market and he receives a check for 37.5 cents for a dividend and you are saying his annualized CURRENT yield is 75%??