Per Investment News of 12/4/06: Sheen of dividends lures many investors--
According to the article, Eaton Vance did an annual investor study and found that 73% of investors preferred dividend-paying stocks because they were "predictable cash generators" and reflected "financial strength". They also found that:
- 45% of investors increased money invested in dividend-paying securities, while only 16% decreased their holdings in such stocks.
- 69% preferred dividends rather than shares bought back from the company! Of this total, 74% of seniors preferred divis, 62% of baby boomers, and 70% of Gen-Xers.
So for those who downplayed the Aurus 10% stock divi, I think they are seriously outnumbered.