Investors invest in stock for better returns. This included cash dividend and stock dividend as the companies reward their investor for the confidence they have placed on the management. Similarly, the management wants to fulfill their promises or the confidence they are enjoying from investors, be it retail or high net worth or institution. Any company that pays or delivers a consistent record of dividend payments enjoys more confidence among investors. In a way, dividend is a tool that helps the company to maintain the confidence that investors have kept on it.