Dividend Irrelevance Theory

What is the 'Dividend Irrelevance Theory'

The dividend irrelevance theory is a theory that investors are not concerned with a company's dividend policy since they can sell a portion of their portfolio of equities if they want cash.

BREAKING DOWN 'Dividend Irrelevance Theory'

The dividend irrelevance theory essentially indicates that an issuance of dividends should have little to no impact on stock price.

Trading Center