What is Dividend Clientele?
A dividend clientele is a term used to collectively refer to the shareholders in a corporation who are in favor of implementing a specific set of dividend policies. Generally, the type of dividend policy desired by a dividend clientele is one that stands to provide the most benefits for the shareholders. However, the approach desired may or may not be in the best interests in the long-term operation of the company. It is not unusual for companies to issue preferred stock and pay dividends periodically on those shares of stock. In many cases, the structure for calculating and distributing those dividends may contain some discretion on the part of the company. This is often included as a safeguard to make sure the corporation does not become strapped for cash or possibly have to curtail activities that would eventually mean growth for the company. The dividend clientele seek to have more input into how and when dividends are calculated and paid. While the clientele may consider the futur
