Types Of Dividends
Arguments Against Dividends
First, some financial analysts feel that the consideration of a dividend policy is irrelevant because investors have the ability to create "homemade" dividends. These analysts claim that this income is achieved by individuals adjusting their personal portfolio to reflect their own preferences. For example, investors looking for a steady stream of income are more likely to invest in bonds (whose interest payments don't change), rather than a dividend-paying stock (whose value can fluctuate). Because their interest payments won't change, those who own bonds don't care about a particular company's dividend policy.
The second argument claims that little to no dividend payout is more favorable for investors. Supporters of this policy point out that taxation on a dividend is higher than on capital gain. The argument against dividends is based on the belief that a firm who reinvests funds (rather than pays it out as a dividend) will increase the value of......
View the rest of this paper...
Approximate Word Count: 1035
Approximate Pages: 5 (250 words per double-spaced page)
Why should you join Frat Files?
- - It's safe, secure, and private.
- - Instant access to over 100,000 papers. New papers are added hourly.
- - Fast and reliable customer support.
Similar Essays
-
Types Of Dividends
Types of dividends. Arguments Against Dividends First, some financial analysts
feel that the consideration of a dividend policy is ... -
Lester Electronics:Generic Benchmarking
... of payment. Types of dividends are Cash, Stock, and Property. Cash Dividends
are the most common type and form of dividend. Cash ... -
Dividend Relevancy
... earnings. Dividends has following types: • Regular dividends: those paid
by company quarterly, semiannually or annually. • Extra ... -
Business Types
... Types of Business When starting a business for the first time; a person has ... the
corporation distributes some of its earnings in the form of dividends, it does ... -
Types Of Businesses
Types of Businesses. ... s profits are taxed twice in that the corporation is taxed when
profits are earned and distributed shareholders’ dividends are taxed too. ...
Frat Files
Members
Information
