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Homemade Dividends

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Homemade Dividends
A form of investment income that comes from the sale of a portion of shares held by a shareholder.
    
This differs from dividends that shareholders receive from a company according to the number of shares the shareholder has.
    
The existence of homemade dividends is the reason some financial analysts believe that looking at a companies Dividend policy is not important. If investors desires an income stream they Will either sell their shares when they want the income or they Will invest in other income-generating assets.
Posted by  Institute for International Research
 
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