The desire to maintain constant dividends over time tends to keep dividends low.

Name: The desire to maintain constant dividends over time tends to keep dividends low.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Companies that aim to maintain constant dividends over time often set their dividend payments at a sustainable level that can be supported even in less profitable years, which tends to keep dividends relatively low compared to a policy that might aim to distribute more aggressively during profitable periods.

The Desire to Maintain Constant Dividends Over Time Tends to Keep