Bird In Hand

A theory that postulates that investors prefer dividends from a stock to potential capital gains because of the inherent uncertainty of the latter. Based on the adage that a bird in the hand is worth two in the bush, the bird-in-hand theory states that investors prefer the certainty of dividend payments to the possibility of substantially higher future capital gains.

The theory was developed by Myron Gordon and John Lintner as a counterpoint to the Modigliani-Miller dividend irrelevance theory, which maintains that investors are indifferent to whether their returns from holding a stock arise from dividends or capital gains. Under the bird-in-hand theory, stocks with high dividend payouts are sought by investors and consequently command a higher market price.


Investment dictionary. . 2012.

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  • Bird-in-Hand Family Inn — (Bird in Hand,США) Категория отеля: 2 звездочный отель Адрес: 2740 Old Phila …   Каталог отелей

  • Bird and Hand Alley, Court —    In Cheapside (P.C. 1732 Boyle, 1799).     Bird in Hand Alley in Boyle.    See Bird in Hand Alley, Court …   Dictionary of London

  • Bird in Hand Alley, Court —    South out of Cheapside at No.76 (P.O. Directory). West of Bucklersbury, in Cheap Ward.    First mention: O. and M. 1677. Bird in Hand Alley, and in Hatton, 1708.    Can this name be a corruption of the former Bordhawe lane (q.v.)? …   Dictionary of London

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  • bird — ► NOUN 1) a warm blooded egg laying vertebrate animal which has feathers, wings, and a beak, and typically is able to fly. 2) informal a person of a specified kind or character: she s a sharp old bird. 3) Brit. informal a young woman or… …   English terms dictionary

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