Dividend Clientele

Investors come in many flavors. Some buy stocks for growth. Some buy stocks for the dividend. Some buy stocks, speculating that Google will buy them.

Dividend clientele refers to the group of shareholders who view a company's dividend policy from similarly-colored lenses. That group then attempts to lobby the board to follow their whim. Specifically, one dividend clientele set might proffer the company cut the dividend entirely, and use all their excess cash to buy back stock. Another group might want the company to do the opposite.

In normal Main Street investing America, they kibbutz around chair #3 of the hair salon when they send in their proxies with angry notes.