For a company that has no growth, dividends stay constant over time.

Name: For a company that has no growth, dividends stay constant over time.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If a company has no growth, it means that the earnings and profits are not increasing over time. In such cases, the company may choose to pay out a consistent dividend to its shareholders. Since there is no increase in profits, there is no reason to increase the dividend payouts, hence dividends stay constant over time.

For a Company That Has No Growth, Dividends Stay Constant