Which one of these parties is most likely to prefer a stock with a high-dividend payout policy?
A) Financial institutions
B) Retired individuals
C) Growth-seeking investors
D) Endowment funds

Question

Quizplus · Accepted Answer

Retired individuals typically prefer stocks with high-dividend payout policies as they require a regular income stream to sustain their lifestyle. Financial institutions and endowment funds may have different investment objectives, and growth-seeking investors tend to prefer reinvestment of earnings into the company for future growth rather than a high dividend payout.

Which One of These Parties Is Most Likely to Prefer