Which type of company is most likely to pay out large proportions of their earnings in the form of dividends?

Question

Quizplus · Accepted Answer

Not all firms pay dividends. Many fast-growing firms like Facebook retain all of their earnings because they can earn high rates of return on the earnings they reinvest. Companies with fewer growth opportunities like Century Link or Verizon typically pay out large proportions of their earnings in the form of dividends, thereby allowing their stockholders to reinvest their dividend payments in higher-growth companies.

Which Type of Company Is Most Likely to Pay Out