Why share holder prefer company that pay higher dividend?

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Answer :

answer:people are willing to pay more for shares that represent a stream of higher payments (dividends) than in a company that does not pay dividends or pays a lower dividend. Buying shares one expects to either have the share value to increase or to have dividends paid, or a combination of both. Once a company matures and generates more cash than needed for reinvestment, the owners (shareholders) want some return on their investment. Dividends are the way shareholders get money out of the company while retaining ownership.

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