aluation of Dividend Stability n Information content - management may be able to affect the expectations of investors through the informational content of dividends, a stable dividend suggests that the company expects stable or growing dividends in the future n Current income desires - some investors who desire a specific periodic income will prefer a company with stable dividends to one with unstable dividends o Institutional considerations -a stable dividend may permit certain institutional investors to buy the common stock as they meet the requirements to be 18-17 placed on the organizations approved list18-17 Valuation of Dividend Stability Information content -- management may be able to affect the expectations of investors through the informational content of dividends. A stable dividend suggests that the company expects stable or growing dividends in the future. Current income desires -- some investors who desire a specific periodic income will prefer a company with stable dividends to one with unstable dividends. Institutional considerations -- a stable dividend may permit certain institutional investors to buy the common stock as they meet the requirements to be placed on the organizations approved list