Anyone can point out the pros and cons of the out parameter. When it is preferred to use out parameter rather than just to return a value.
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I would suggest taking a look at the TryParse methods on the built in types like int. The return value is a bool to indicate success while the value is returned via an out parameter. This construct makes it useful to call this method in a looping construct where another return type would/might make it a bit more complicated.
On further reflection one con could be a tendency to just keep adding out parameters to a method instead of properly encapsulating the logic.