When the dividend yield is relatively low,investors must expect some of their return to come from increases in the price of the shares.

Question

Quizplus · Accepted Answer

This statement is true. When a company's dividend yield is low, it means that the amount of dividend paid out relative to the stock price is small. Therefore, investors must rely on the stock price appreciation to generate a substantial portion of their return.

When the Dividend Yield Is Relatively Low,investors Must Expect Some