Dividends generally
A) are paid as a fixed percentage of earnings.
B) fluctuate more than earnings.
C) are guaranteed by the SEC.
D) are more stable than earnings.

Question

Quizplus · Accepted Answer

Dividends are usually paid out of a company's profits and, therefore, are more stable than earnings, which can fluctuate greatly from year to year. Dividends are not guaranteed by the SEC, nor are they paid as a fixed percentage of earnings. While they can fluctuate, they tend to be less volatile than earnings.

Dividends Generally