According to MM, "homemade" dividends are created by:

Question

Quizplus · Accepted Answer

Homemade dividends are created by selling a portion of your non-dividend paying holdings, thereby creating a cash flow similar to receiving a dividend. This can be a useful strategy for investors who desire a regular income stream from their investments. Option A is not entirely accurate as only purchasing stocks that increase their regular dividends does not necessarily create homemade dividends, but rather a potential for larger future dividends. Option C is not relevant to creating homemade dividends as Treasury bills do not pay dividends. Option D is withdrawing from savings, not from an investment in stocks, and cannot create homemade dividends.

According to MM, "Homemade" Dividends Are Created By