Under what circumstances would an investor prefer to receive cash dividends rather than stock dividends and under what circumstances would an investor prefer stock dividends to cash dividends?
a. If the company can reinvest its retained earnings at a higher ROI than I could earn on the money paid to me in dividends, I would prefer that the company pay a cash dividend.
b. If I needed current income from my investment, I would want Cash dividends.
c. if I needed current income from my investment, I would want stock dividends.
d. If the company can reinvest its retained earnings at a higher ROI than I could earn on the money paid to me in dividends.