Stock Dividends are Lemons, Not Melons

January 1961
California Management Review;Winter61, Vol. 3 Issue 2, p61
Academic Journal
While stock dividends sound glamorous and warm the hearts of uninformed investors, the truth is that they are a wasteful method of reducing surplus, beneficial perhaps, to marketwise insiders, but costly to stockholders and the firm that declares them. This article analyzes the cost of the average melon.


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