Dividend Clientele

AAA

DEFINITION of 'Dividend Clientele'

A group of shareholders with a preference regarding how much a company will pay out in dividends, often for tax reasons. Dividend clientele usually make decisions regarding distributions based on which is most advantageous to them.

INVESTOPEDIA EXPLAINS 'Dividend Clientele'

Clientele groups are often dictated by age as well as income level. Older or retired investors tend to prefer higher dividend income than younger shareholders, who may prefer that the company use free cash flows to fund growth rather that distribute dividends. Ultimately, dividend clienteles tend to be growth-versus-income parties. The effects of dividend clientele on a company's stock price are somewhat controversial.

RELATED TERMS
  1. Shareholder

    Any person, company or other institution that owns at least one ...
  2. Dividend Capture

    A timing-oriented investment strategy revolving around the purchase ...
  3. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  4. Common Stock

    A security that represents ownership in a corporation. Holders ...
  5. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  6. Dividend Rate

    The total expected dividend payments from an investment, fund ...
Related Articles
  1. What is the difference between preferred ...
    Investing

    What is the difference between preferred ...

  2. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  3. Is Growth Always A Good Thing?
    Markets

    Is Growth Always A Good Thing?

  4. How And Why Do Companies Pay Dividends?
    Investing Basics

    How And Why Do Companies Pay Dividends?

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center