increase, with higher dividend-yielding funds attracting more inflows after controlling for fund returns. Responding to their … incentives, income fund managers tend to aggressively over-weight high dividend stocks in a low-rate environment. This behavior … of “reaching for dividends” generates market impact: high dividend stocks tend to have higher prices when interest rates …

documented in the literature, evidence on the benefits of avoiding high-dividend-paying stocks is less conclusive. We evaluate … the tax benefit of dividend avoidance for quantitative multi-style strategies. We find that dividend avoidance generally … particularly pronounced for strategies with naturally higher dividend yields, such as strategies with a large exposure to the value …

Taxes create distortions in financial markets. A tax credit attached to dividend payments in Australia creates a wedge …, buy aggressively cum-dividend and sell aggressively ex-dividend, demanding liquidity from institutional investors. Stocks … with higher net purchases by individual investors operating through discount brokers in the cum-dividend period have exday …

"We test the hypothesis that the 2003 dividend tax cut boosted U.S. stock prices and thus lowered the cost of equity …-sectional response of prices on high-dividend versus low-dividend paying stocks. We do not find any imprint of the dividend tax cut news … on the value of the aggregate U.S. stock market. On the other hand, high-dividend stocks outperformed low-dividend stocks …