Typically,a profitable company that pays relatively high dividends:
A)is an attractive investment for those seeking a steady income,like retired people.
B)will reinvest more profit which can lead to smaller growth potential.
C)will experience more growth in stock price over time.
D)is a bad investment.

Question

Quizplus · Accepted Answer

Rather than wait for growth in stock value,other investors,such as retired people who need a steady income,prefer to receive their return in the form of dividends.These people often seek stocks that consistently pay dividends (called an income investment).

Typically,a Profitable Company That Pays Relatively High Dividends