Concentration on dividend payout of company

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A company paying dividends are usually viewed as more favorable compared to a company that is not paying (or paying less) dividends. In fact, often times, some say that the higher the dividend distribution of the company the more favorable it becomes. Therefore, some may conclude to forecast/concentrate on dividends or the dividend payout of a company.

Question: Assuming everything else is the same, is this simple concentration on the dividend payout of the company a good valuation technique? Take the FALSE approach with your answer.

Reference no: EM13146125


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