as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
are investor's preference for dividends justified?
user
some investors (pension funds or insurance companies) need to pay out a certain amount of money to their clients. they need cash on a periodical basis, and thus prefer dividend paying stock more.
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