Dividend payout ratios are generally much lower for small or newly established firms than for large, publicly owned firms.

Question

Quizplus · Accepted Answer

Small or newly established firms often reinvest their earnings back into the business for growth and expansion rather than paying out dividends to shareholders. On the other hand, larger, more established companies with a stable cash flow tend to have higher dividend payout ratios.

Dividend Payout Ratios Are Generally Much Lower for Small or Newly