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That can be done by adjusting the personal portfolio to reflect the investor's own preferences. A second argument suggests that little to no dividend payout is more favorable for investors. This can be led back to the fact that the taxes which have to be paid on dividends are higher than these on capital gains. Furthermore, there is the "advantage" of the reinvestment of the funds in the company. Supporters of this policy argue that companies who save money on dividends will invest this and increase the value of the firm as a whole, which consequently will lift the market value of the stock price...
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Common topics in this essay:
- Dividend Policy
- ANALYSIS ON CAPITAL STRUCTURE, DIVIDEND POLICY & WORKING CAPITAL REQUIREMENTS OF
- An Example Of Dividend Policy Irrelevance
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