What factor is more significant in minority valuations?

In minority valuations, the history of actual dividends paid holds particular significance because it provides a tangible record of the company's financial performance and its ability to generate cash flow for shareholders. This historical data can be more relevant for valuing minority interests, as it reflects the company's profitability over time and the returns it has delivered to its owners.

In many cases, minority shareholders may have limited influence over management and decision-making within the company. Therefore, their valuation relies heavily on what they can expect to receive in terms of financial returns rather than control over future growth potential. Dividends represent actual distributions to shareholders, making them a concrete measure of the value derived from the investment.

While future projections and market comparisons are also important in determining value, they can be more speculative, particularly for minority positions, where potential returns could be uncertain given the lack of control. Tax assessment values are relevant for understanding the company's worth in different contexts, but they generally do not provide a clear picture of the intrinsic value relevant to minority shareholders. Thus, dividend history is often prioritized in minority valuations.