The lower the payout ratio,the greater the odds that the company's earnings will sustain future dividend payments.

Name: The lower the payout ratio,the greater the odds that the company's earnings will sustain future dividend payments.
Brand: Quizplus
Rating: 4.7 (51 reviews)

Question

Quizplus · Accepted Answer

A lower payout ratio means that the company is retaining more of its earnings, which can be reinvested in the business or held in reserve to sustain future dividend payments, thereby increasing the likelihood of continuing to pay dividends in the future.

The Lower the Payout Ratio,the Greater the Odds That the Company's