Figure 14.4 shows that every year, many more firms increase dividends than cut them. Comment on why you think that is true.

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FIGURE 14.4 U.S. Publicly Listed Companies Maintaining, Increasing, or Decreasing Dividends 1959 to 2019 Among firms that pay dividends, the most common practice is to increase dividends yearly, with dividend cuts being relatively rate. Public U.S. Dividend-Paying Firms (%) 90 80 70 60 50 40 30 20 10 Firms increasing dividends h Firms maintaining dividends Firms decreasing dividends K 04 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 2019 Your