Are investor's preference for dividends justified?
Some investors (pension funds or insurance companies) need to pay out a certain amount of money to their clients. They need cash on a periodical basis, and thus prefer dividend paying stock more.
Below is an instruction that describes a task. Write a response that appropriately completes the request.

### Instruction:
Are investor's preference for dividends justified?

### Response:
Some investors (pension funds or insurance companies) need to pay out a certain amount of money to their clients. They need cash on a periodical basis, and thus prefer dividend paying stock more.