Dividend clienteles suggest that a firm's dividend policy will be affected by the needs of the shareholders.

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Dividend clienteles theory suggests that a firm's dividend policy will be influenced by the preferences and needs of its shareholders. For example, some shareholders may want a high dividend payout to receive regular income, while others may prefer a low or no dividend payout to reinvest profits for capital gains. The firm may adjust its dividend policy to attract and retain different types of dividend clientele.

Dividend Clienteles Suggest That a Firm's Dividend Policy Will Be