Homemade dividends are described by Modigliani and Miller to be:

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Homemade dividends refer to the concept where investors create their own dividend policy by buying or selling shares of a company to achieve their desired income stream, rather than relying on the company's dividend policy. This concept is part of Modigliani and Miller's theory on dividend irrelevance, which suggests that a firm's dividend policy does not affect its value in a perfect market.

Homemade Dividends Are Described by Modigliani and Miller to Be