Even if a company does not officially follow a fixed-dividend policy, dividend payments are
A) extremely difficult to predict.
B) very volatile and subject to economic conditions.
C) fairly stable from one time period to another.
D) directly tied to a company's P/E ratio.

Question

Quizplus · Accepted Answer

Dividend payments, even in companies without a fixed-dividend policy, tend to be fairly stable over time as companies strive to maintain consistency in payouts to signal financial health and stability to investors.

Even If a Company Does Not Officially Follow a Fixed-Dividend