What real- life observations support the existence of a dividend clientele?
A)Risk- averse investors prefer shares with a strong dividend- stream.
B)Younger investors often prefer capital gains to dividends.
C)Different types of investors are attracted to particular companies.
D)All of the above

Question

Quizplus · Accepted Answer

All of the choices provided are real-life observations that support the existence of a dividend clientele. Risk-averse investors do prefer shares with a strong dividend stream for the steady income they provide. Younger investors often prioritize capital gains over dividends due to their longer investment horizon and potentially lower immediate income needs, allowing for reinvestment and growth. Different types of investors being attracted to particular companies based on their dividend policies further supports the concept of dividend clienteles, as investors seek out companies that match their specific income needs and tax situations.

What Real- Life Observations Support the Existence of a Dividend