Which of the following will NOT increase a company's dividend payments?
A) It can issue more shares.
B) It can increase its earnings.
C) It can decrease the number of shares outstanding.
D) It can increase its dividend payout rate.

Question

Quizplus · Accepted Answer

Issuing more shares would dilute the value of existing shares and spread the earnings across a larger number of shareholders, thus decreasing the dividend payment per share. The other three options would all increase the amount of earnings available to be paid out as dividends, leading to higher dividend payments.

Which of the Following Will NOT Increase a Company's Dividend