"Individuals living off of their dividends streams do not like reductions in their quarterly payments." This sounds like an argument for what type of dividend policy?

Question

Quizplus · Accepted Answer

The statement suggests that individuals living off of their dividend streams prefer a steady and consistent dividend payment. A sticky dividend policy aims to maintain a steady and predictable dividend payout, which makes it an appropriate choice for these individuals. Residual dividend policy allows for more flexibility to pay dividends based on earnings, and a constantly declining dividend policy would be unfavorable for investors relying on consistent dividend payments.

"Individuals Living Off of Their Dividends Streams Do Not Like