A stock's market value will be higher the higher its expected dividend stream is,all else being equal.

Question

Quizplus · Accepted Answer

The market value of a stock is closely related to the dividends paid by that stock. As the expected dividend stream increases, so does the value of the stock, assuming everything else remains constant. This is because investors consider dividends as a source of income from their investment, and they will be willing to pay more for a stock that is expected to provide a higher dividend stream.

A Stock's Market Value Will Be Higher the Higher Its