Asked by Landrie Pierce on Apr 24, 2024

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In general, investors prefer stocks with large dividends to those with small dividends.

Large Dividends

Significant payments made by a corporation to its shareholders, usually derived from the company's profits.

Small Dividends

Refers to dividend payments that are relatively small in amount, typically paid by companies with modest profits or those adopting conservative dividend policies.

Investors

Individuals or organizations that allocate capital with the expectation of receiving financial returns.

  • Recognize factors influencing dividend policy preferences among investors.
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YL
Yailin Llerandi7 days ago
Final Answer :
False
Explanation :
Investors have different preferences; some might prefer stocks with large dividends for the income they provide, while others might prefer stocks that reinvest earnings into the company for growth, which could lead to higher stock prices in the future.