Constant-pay-out-ratio dividend policy is a dividend policy based on the payment to existing owners of a dividend in the form of stock as a certain percentage of the firms total number of stocks outstanding in each dividend period.

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Constant-pay-out-ratio dividend policy is a dividend policy based on the payment to existing owners of a dividend in the form of cash as a certain percentage of the firm's earnings in each dividend period. It does not involve issuing additional stocks as dividend payment.

Constant-Pay-Out-Ratio Dividend Policy Is a Dividend Policy Based on the Payment