In 2021, Milton Corporation Limited (ASX: MLT) announced that the independent Milton directors have determined to pay special dividend of 37 cents for each Milton share held by shareholders as at the record date, on 22^nd of September 2021.

Some investors recognize this announcement as a good news for Milton Corporation, while other investors sell Milton shares as they believe it is a bad news. Explain why investors have different point of views about this announcement.

We observed that the trading volume of Milton stock increased significantly around the ex-dividend date. Ignoring the impact of franking credit, what does the dividend-capture theory imply about the volume of trade in a stock around the ex-dividend day?

Empirical evidence only supports dividend-capture theory when a company pays large special dividends. Why do many high-tax investors continue to hold stocks even when dividends (small ordinary dividends) are paid?