Which of the following policies would appeal to an investor using dividends to increase her retirement income?
A) Maintaining smoothly increasing dividends from year to year.
B) A residual dividend policy.
C) Maintaining a constant dividend payout ratio.
D) A stock repurchase plan.

Question

Quizplus · Accepted Answer

Maintaining smoothly increasing dividends from year to year would appeal to an investor using dividends to increase her retirement income as it provides a consistent and predictable income stream that can help to fund her retirement.

Which of the Following Policies Would Appeal to an Investor