The dividend policy that states smoothing of the dividend stream in order to minimize the effect of company reversals is called the
A) increasing-stream hypothesis of dividend policy.
B) stable dividend policy.
C) clientele effect policy.
D) residual payout policy.

Question

Quizplus · Accepted Answer

The stable dividend policy aims to smooth out the dividend stream and minimize the impact of fluctuations in company performance. This policy is often favored by investors who want a predictable and steady income stream from their investments.

The Dividend Policy That States Smoothing of the Dividend Stream