Why do shareholders sometimes prefer not to opt for dividends?
Dividends can be a good earning, more so because they are non-taxable in your hands since now only companies have to pay tax on the dividend they disburse. Shareholders sometimes prefer to do away with dividends. This is specially so for small and fast growing companies. Investors in such companies feel it is better to plough back the earnings for growing the business rather than distribute as dividends.
