A dividend policy where the company pays out a fixed percentage of their earnings is called a

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A constant payout ratio policy is a dividend policy where a fixed percentage of a company's earnings is paid out as dividends. This provides investors with a predictable income stream, and the company can adjust the dividend amount based on its earnings. Option A is incorrect because a constant nominal payout policy would mean that the company pays out a fixed dollar amount as dividends, which may not be sustainable if the earnings fluctuate. Option B is incorrect because a target dividend payout ratio policy implies that the company sets a goal for its dividend payout ratio, but this may not be maintained if the earnings change. Option D is incorrect because a low-regular and extra policy means that the company pays a lower regular dividend and may supplement it with occasional extra dividends, which may not provide a consistent dividend income for investors.

A Dividend Policy Where the Company Pays Out a Fixed