Dividend Clientele


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.

BREAKING DOWN '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.

  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Shareholder

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

    A timing-oriented investment strategy revolving around the purchase ...
  4. Dividend Rate

    The total expected dividend payments from an investment, fund ...
  5. Common Stock

    A security that represents ownership in a corporation. Holders ...
  6. Capital Gain

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