The practice of maintaining relatively constant dividends is called ________.
A) dividend calibration
B) dividend rollover
C) dividend smoothing
D) dividend rollbacks

Question

Quizplus · Accepted Answer

The practice of maintaining relatively constant dividends is called dividend smoothing. This means that dividends are adjusted gradually and in small amounts rather than being erratic or unpredictable. The purpose of dividend smoothing is to provide investors with a more stable source of income, which can help to reduce volatility in share prices.

The Practice of Maintaining Relatively Constant Dividends Is Called ________