Relevance of dividends A. Preference for dividends Uncertainty surrounding future company profitability leads certain investors to prefer the certainty of current dividends Investors prefer large dividends Investors do not like to manufacture homemade dividends, but prefer the company to distribute them directly. 18-618-6 Relevance of Dividends Uncertainty surrounding future company profitability leads certain investors to prefer the certainty of current dividends. Investors prefer large dividends. Investors do not like to manufacture homemade dividends, but prefer the company to distribute them directly. A. Preference for dividends