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Dividend Clientele

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Dividend clientele
A group of shareholders who prefer that the firm follow a particular dividend policy. Such a preference may be based on comparable tax situations.

Dividend Clientele
Shareholders who pressure a publicly-traded company to follow a certain dividend policy, usually in order to minimize their own tax liability. Often, the dividend clientele asks the company to change the schedule of dividend payments to that which is most favorable to them. However, these policies are not always in the best long-term interests of the company.


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