Low dividend yields are seen

Question

Quizplus · Accepted Answer

Low dividend yields are often seen when firms have good investment opportunities as they may choose to reinvest their earnings back into the company rather than pay out dividends to shareholders. This can lead to lower dividend yields, but potentially higher future growth and capital appreciation. High interest rates could potentially lead to higher dividend yields as investors may prefer the steady income generated from dividends, but this is not always the case. A stock market downturn may also lead to lower dividend yields, but this is not a guaranteed outcome.

Low Dividend Yields Are Seen