If a retired individual lives on his or her investment income, then it would make sense for this person to prefer stocks with high payouts so he or she could receive cash without going to the trouble and expense of selling stocks. On the other hand, it would make sense for an individual who would just reinvest any dividends received to prefer a low-payout company because that would save him or her taxes and brokerage costs.
A) True
B) False

Answer rating: 100% (QA)

ANSWER TRUE As long as a company continues to thrive and your portfolio is well balanced reinvesting ... View the full answer