Irrelevance of dividends B. Conservation of value M&M and the total-value principle ensures that the sum of market value plus current dividends of two firms identical in all respects other than dividend-payout ratios will be the same Investors can create any dividend policy they desire by selling shares when thethe dividend payout is too low or buying shares when the dividend payout is excessive 18518-5 Irrelevance of Dividends M&M and the total-value principle ensures that the sum of market value plus current dividends of two firms identical in all respects other than dividend-payout ratios will be the same. Investors can create any dividend policy they desire by selling shares when the the dividend payout is too low or buying shares when the dividend payout is excessive. B. Conservation of value