In taking the discussion and directing the discussion towards the evaluating the different dividend payout policies followed by companies,I am sure you will agree that the dividend decisions are always inspired by the shareholder pressures. What can be the various reasons for shareholders to desire high payout policy? Have you considered tax benefit to the investor as a reason for desiring high payout by investors?

Class,

Could you throw some light on how the dividends are taxed in the hands of the investor in your countries? How do these tax policies specific to your country affect the desirability of dividends to shareholders?

Looking forward to your explanation with references for review