If stockholders care about taxes, then stocks should attract clienteles based on dividend yields. Surveys support this by showing that the highest dividend yield stocks are held by investors in the:

Question

Quizplus · Accepted Answer

Investors in the lowest tax bracket are less affected by taxes on dividends, making high dividend yield stocks more attractive to them compared to those in higher tax brackets who would prefer to minimize taxable income.

If Stockholders Care About Taxes, Then Stocks Should Attract Clienteles