You are a retired worker whose income is derived from your company pension plan and social security.However,you are highly dependent upon the income generated from your 401(k)plan,which is heavily weighted in stocks that pay substantial dividends.Which of the following dividend policies would you prefer?
A)constant dividend payment ratio
B)stable dollar dividend per share
C)small,regular dividend plus a year-end extra
D)any of the above would be equally desirable

Question

Quizplus · Accepted Answer

A stable dollar dividend per share policy would provide consistent and predictable income, which is beneficial for someone dependent on dividends for their living expenses.

You Are a Retired Worker Whose Income Is Derived from Your