A constant-payout-ratio dividend policy is based on the payment of a certain percentage of earnings to owners in each dividend period.

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A constant-payout-ratio dividend policy is based on a specific percentage of earnings being paid out to the owners in each dividend payment period. This policy ensures that investors receive a regular income from their shares and also allows the company to retain a portion of its earnings for other purposes such as investment and growth opportunities.

A Constant-Payout-Ratio Dividend Policy Is Based on the Payment of a Certain