In the dividend relevance arguments, current dividend payments are believed to reduce investor's uncertainty, thereby all else being equal placing a higher value on the firm's stock.

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According to the dividend relevance arguments, current dividend payments can reduce investor uncertainty by providing a predictable cash flow, which can lead to a higher valuation of the firm's stock compared to a non-dividend-paying company. Therefore, all else being equal, investors may place a higher value on the stocks of firms that pay dividends.

In the Dividend Relevance Arguments, Current Dividend Payments Are Believed