Investors expectation of dividend are mainly based on which factor
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Answer:
Five of the primary reasons why dividends matter for investors include the fact they substantially increase stock investing profits, they provide an extra metric for fundamental analysis, they reduce overall portfolio risk, they offer tax advantages, and they help to preserve purchasing power of capital.
Growth and Expansion of Profits
One of the primary benefits of investing in dividend-paying companies is dividends tend to steadily grow over time. Well-established companies that pay dividends typically increase their dividend payouts from year to year. There are a number of "dividend aristocrats," or companies that have continuously increased their dividend payouts for more than 25 years consecutively. Since 1980, the dividend average compounded annual growth rate for S&P 500 companies that offer dividends has been 3.2%.