Which of the following dividend payment policies represents a compromise between a stable, predictable dividend policy and a constant payout ratio policy?

Question

Quizplus · Accepted Answer

The low regular dividend plus extras policy is a compromise between a stable, predictable dividend policy and a constant payout ratio policy. It provides a stable base dividend, ensuring predictability for investors, while allowing for additional "extra" dividends in years when profits are higher, thus linking the dividend payout to the company's performance.

Which of the Following Dividend Payment Policies Represents a Compromise