What Do Stockholders Like?

Clendenin, John
September 1958
California Management Review;Fall1958, Vol. 1 Issue 1, p47
Academic Journal
The article reports on the preferences of stockholders. The author focuses on discussing the impact of dividend payout policy on the price of stocks by comparing the price-earnings ratios of low-payout and high-payout stocks. Results from a related research study indicate that stockholders often prefer conservative stocks and limited cash dividends. After analyzing the research results, the author concludes that stockholders prefer to reinvest in corporations in order to support organizational growth which, in turn, will heighten stock prices.


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