Center For American Progress:
The tax bill before the President provides a clear incentive to move money away from non-dividend stocks and low-dividend stocks into stocks that pay higher dividends. The problem: Companies that pay dividends grow more slowly than those that don’t; and companies that pay high dividends (the ones made significantly more attractive by the tax bill) grow more slowly than those that pay more modest dividends.
The effect of the tax legislation on its way to the president is to reduce the capital available to businesses that are expanding and creating jobs and move it to older mature companies that have little else to do with the cash other than to pass it back to shareholders in the form of dividends.
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