Final answer:
Investors might favor high dividend payouts due to the immediate income they provide, the savings on transaction costs, and potential tax and legal benefits. While low brokerage fees facilitate stock sales, they do not directly influence preference for dividends. The correct answer is option d.
Step-by-step explanation:
Investors may favor a high dividend payout for several reasons. First, a preference for current income means that investors seek an immediate return on their investment through dividends, rather than waiting for a potential capital gain. This can be especially appealing to those needing regular income, such as retirees. Second, high dividend stocks can help investors save on transaction costs associated with selling shares to realize gains, as they can earn income without having to sell their investment.
Lastly, while low brokerage fees can make it easier to sell stock, they are less related to the preference for dividends. Therefore, option d, mentioning a preference for tax and legal benefits from high dividends, could be a reason if certain tax advantages apply to dividends in the investor's jurisdiction.