The dividend puzzle, as originally framed by Fischer Black, relates to two interrelated questions in corporate finance and financial economics: why do corporations pay dividends; and why do investors "pay attention" to dividends? A key observation here, is that companies that pay dividends are rewarded by investors with higher valuations (in fact, there are several dividend valuation models; see The Theory of Investment Value).
The dividend puzzle, as originally framed by Fischer Black, relates to two interrelated questions in corporate finance and financial economics: why do corporations pay dividends; and why do investors "pay attention" to dividends? A key observation here, is that companies that pay dividends are rewarded by investors with higher valuations (in fact, there are several dividend valuation models; see The Theory of Investment Value).
Source: Wikipedia "Dividend puzzle" · CC BY-SA 4.0
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