JLI Corp.had earnings per share of $4 per share last year and paid a dividend of $1 per share.For the current year,JLI Corp.generated earnings per share of $6 and paid a dividend of $1 per share.This is an example of what type of dividend policy?
A) constant dividend payout ratio
B) stable dollar dividend per share
C) small, regular dividend plus a year-end extra
D) payout ratio equal to zero

Question

Quizplus · Accepted Answer

The dividend policy exhibited by JLI Corp. is the stable dollar dividend per share where the company pays a constant dividend of $1 per share despite an increase in earnings per share. This policy maintains a steady dividend payout and provides investors with a predictable income stream.

JLI CorpHad Earnings Per Share of $4 Per Share Last Year