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The presence of dividend clienteles has received a great deal of attention from the literature. One such clientele is the senior dividend clientele. Becker et al. find empirical evidence that senior citizens demand dividends. Specifically, their results indicate that firms headquartered in counties with a relatively large proportion of citizens over the age of 65 are more likely to pay dividends. This preference may be due to consumption purposes as seniors may be relatively more likely to need the regular cash flows provided by dividends to meet recurring expenses. This belief is commonly held and is often referenced in the popular press and in academic research.
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