Because trading in the U.S stock market is very active investors seeks speculative profits over dividend income
Hi,
In the late 90's companies were investing cash to grow their businesses leaving less for dividends. Today the environment is different: subpar growth / low visibility, companies tend to spend more on buying back their shares and/or growing their dividends. Hope this helps, Sébastien
The payment of dividends may also be a negative signal. The dividend distribution might look like a lack of investment opportunities and liquidity is then distributed to shareholders. See the case of Microsoft.
The dividend policy is very controversial both theoretically and empirically
HI,
This paper might give you perhaps some part of the answer
B Buchanan,C Cao, E Liljeblom,S Weihrich, "uncertainty and firm dividend policy - a natural experiment", Journal of Corporate Finance, 2017, 42, p 179 -197.
Best regards.
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