Search

Article Information


Stock Dividends are Lemons, Not Melons
Sosnick, Stephen H.
3/2  (Winter 1961): 61-82

While stock dividends sound glamorous and warm the hearts of uninformed investors, the truth is that they are a wasteful method of reducing surplus, beneficial perhaps, to marketwise insiders, but costly to stockholders and the firm that declares them. This article analyzes the cost of the average melon.

 

California Management Review

Berkeley-Haas's Premier Management Journal

Published at the University of California for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

Learn more
Follow Us