Bird In Hand

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Dictionary Says

Definition of 'Bird In Hand'

A theory that postulates that investors prefer dividends from a stock to potential capital gains because of the inherent uncertainty of the latter. Based on the adage that a bird in the hand is worth two in the bush, the bird-in-hand theory states that investors prefer the certainty of dividend payments to the possibility of substantially higher future capital gains.  
Investopedia Says

Investopedia explains 'Bird In Hand'

The theory was developed by Myron Gordon and John Lintner as a counterpoint to the Modigliani-Miller dividend irrelevance theory, which maintains that investors are indifferent to whether their returns from holding a stock arise from dividends or capital gains. Under the bird-in-hand theory, stocks with high dividend payouts are sought by investors and consequently command a higher market price.
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'Bird In Hand'

  • A Bird's-Eye View Of Trucking's Revival

    http://stocks.investopedia.com/stock-analysis/2010/A-Birds-Eye-View-of-Truckings-Revival-JBHT-CNW-LSTR-ODFL-KNK-WERN1125.aspx
    ... A Bird's-Eye View Of Trucking's Revival. ... t skewed by survivorship bias - addresses
    that concern by confirming that the improved profits are walking hand-in-hand ...

  • CFA Level 1 Study Guide - Corporate Finance - Dividend Theories ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/dividend-theories.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Ostrich Approach To Investing A Bird-Brained Idea

    http://www.investopedia.com/articles/basics/08/passive-invest-ostrich-effect.asp
    ... This behavior is named after the bird because investors who behave this way "bury ...
    On the other hand, an investor who exhibits the ostrich effect ignores bad ...

  • 8 Easy Ways To Slash Your Holiday Budget Slideshow | Investopedia

    http://www.investopedia.com/slide-show/slash-holiday-budget/pass-mega-bird.aspx
    ... Take A Pass On The Mega-Bird. While ... hunt. Hit The Thrift Stores. Don't be ashamed
    to buy second-hand gifts for your family and friends. ...

  • Break Up Brunswick

    http://stocks.investopedia.com/stock-analysis/2010/Break-Up-Brunswick-BC-PII-ACAT-HOG-MPX0506.aspx
    ... Maybe so. However, it's equally possible that sales will never get back to the heydays
    of 2005-2006. After all, a bird in the hand is worth two in the bush. ...

  • CFA Question of the Week 17/05/2005 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/170505.asp
    ... c) The bird in the hand theory argues that dividends are the more certain component
    of total return, and hence, the higher this component, the more valuable ...

  • How Much Is Casey's Really Worth?

    http://stocks.investopedia.com/stock-analysis/2010/How-Much-Is-Caseys-Really-Worth-CASYATD.AATD.BWMKRDKSVU0909.aspx
    ... A Bird in the Hand Last April, when the first offer ($36 per share) was announced,
    Casey's stock jumped 23.8% to $38.91. As of September ...

  • The 401(k) Investor: A Retirement Plan That Works

    http://www.investopedia.com/articles/retirement/11/401k-investing-for-retirement.asp
    ... conservative investments. Remember that old saying about the value of a
    bird in the hand versus two in the bush! (For information ...

  • The Barnyard Basics Of Derivatives

    http://www.investopedia.com/articles/basics/07/derivatives_basics.asp
    ... getting nervous because he is worried that some shock, another case of bird flu
    for ... extraordinaire and an active writer of options, agrees to give him a hand. ...

  • Top 6 Myths About Social Security Benefits

    http://www.investopedia.com/articles/retirement/08/6-retirement-myths.asp
    ... Advertisement - Article continues below. The second school holds that a bird (or
    benefit in this case) in the hand is worth more than two in the bush. ...

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