Question

2 Adherents of the “dividends-are-good” school sometimes point to the fact that stocks with high yields tend to have above-average price–earnings multiples. Is this evidence convincing? Critically discuss this statement in not more than 1000 words.

Answer 1

2 Adherents of the “dividends-are-good” school sometimes point to the fact that stocks with high yields tend to have above-average price–earnings multiples. Is this evidence convincing? Critically discuss this statement in not more than 1000 words.