One of the major influences on dividends is the corporate growth rate in sales and the subsequent return on assets.

Question

Quizplus · Accepted Answer

A company's ability to generate sales and profits is a major determinant of its dividend policy. A company with strong sales growth and high profits is more likely to increase its dividend payments to shareholders, while a company with weaker sales growth and lower profits may have to cut or eliminate dividends.

One of the Major Influences on Dividends Is the Corporate