Corporate dividends are less volatile than corporate earnings.

Name: Corporate dividends are less volatile than corporate earnings.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Corporate dividends tend to be less variable than corporate earnings because companies usually try to maintain stable or growing dividend payments to keep their shareholders happy. On the other hand, earnings can fluctuate due to various factors such as changes in demand, competition, cost of production, and macroeconomic conditions.

Corporate Dividends Are Less Volatile Than Corporate Earnings