[Verse 1] There's a sparrow perched upon your window ledge today While tomorrow's eagle soars in cloudy skies so far away Which one would you choose to feed your hungry soul? The certain seed or phantom flight beyond control? Dividends are cash that hits your pocket now Future capital gains make promises somehow But promises can crumble when the market's rough Sometimes guaranteed is better than enough [Chorus] Bird-in-the-hand beats two up in the tree Current dividends trump uncertainty When risk feels heavy and the future's hazy Take the cash today, don't drive yourself crazy Tax preference changes every investor's game Different rates on dividends shift fortune and fame Calculate your bracket, know your marginal cost What looks like profit might leave you double-crossed [Verse 2] Sarah gets her quarterly checks from steady stocks While her neighbor Jake waits for his portfolio's rocks To appreciate in value over years ahead Sarah sleeps soundly; Jake tosses in his bed Company earnings flow in two directions clear Pay shareholders now or reinvest for next year Management decides but shareholders have voice Through their buying patterns, they influence the choice [Chorus] Bird-in-the-hand beats two up in the tree Current dividends trump uncertainty When risk feels heavy and the future's hazy Take the cash today, don't drive yourself crazy Tax preference changes every investor's game Different rates on dividends shift fortune and fame Calculate your bracket, know your marginal cost What looks like profit might leave you double-crossed [Bridge] Ordinary income rates on dividend pay Capital gains get preference when you sell away Hold for longer periods, watch the tax bill shrink But liquidity matters more than most people think [Chorus] Bird-in-the-hand beats two up in the tree Current dividends trump uncertainty When risk feels heavy and the future's hazy Take the cash today, don't drive yourself crazy Tax preference changes every investor's game Different rates on dividends shift fortune and fame Calculate your bracket, know your marginal cost What looks like profit might leave you double-crossed [Outro] The sparrow's still there with seed between its claws While eagles dance with economic laws Choose your strategy based on what you need Sometimes the safest bet's the closest seed
← Dividend Irrelevance Theory (Modigliani-Miller) | Clientele Effect and Dividend Signaling →