Financial Information
CF1. Dividend Policy
investment companies
Deciding how large a dividend to pay, or whether to pay a dividend is one of the corporate finance decisions that companies have to take. It is partly influenced by the companies desires and nature of business and corporate finance considerations, and partly by the nature of investors. This is the first in a series of videos on corporate finance issues.
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#7 written by Cyposh 1 year ago
Think you made a mistake sayin growth firm’s have higher dividend yield. There’s some empirical evidence that growth firms are more likely to payout dividends, although, the payout ratio and dividend yield is lower than those of smaller companies. Look up Gaver and Gaver 1993. Additional Evidence on the Association between
the Investment Opportunity Set and Corporate Financing, Dividend, and Compensation
Policies. - Comment Feed for this Post
also preferred stock dividends are 70% tax exempt versus common stock dividends.