Question

How does the stockholder, in general, feel about the relevance of dividends?

Answer 1

How does the stockholder, in general, feel about the relevance of dividends?

The dividends are relevant for stockholder in deciding to invest in a stock. The stockholders, generally, prefers to invest in stocks that pay a healthy dividend. They feel confident about the company's performance if there is growth in dividends year after year.

An increase in dividends year after year signifies that the company is generating sufficient free cash flows to distribute dividends.