Concept
Version 5
Created by Boundless
Impact of Dividend Policy on Clientele
Clientele Type Example
Retirees are more likely to prefer high dividend payouts over capital gains since this provides them with cash income. Therefore, if a company discontinued paying dividends, the clientele effect may cause retiree shareholders to sell the stock in favor of other income generating investments.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources: