12. Ch. 13 Dividend practices In general, firms' dividend practices fit into the categories listed in the following table (constant payout ratio, low regular dividend plus extras, residual dividend policy, and stable, predictable dividend policies). Identify the category that each practice corresponds to in the table. Constant Payout Ratio Low Regular Dividend Plus Extras Residual Dividend Stable, Predictable Dividend Practice Specialized Chemicals Inc.'s annual dividend has increased by 1% every year since 1966. O Smith and Jones Co. sets its dividend rather conservatively, but supplemental dividends are periodically issued when it finds itself with excess funds. Omni Consumer Products Co. always pays the same percentage of its annual net income as dividends. O O St. Mildred's Brewing Co. pays dividends only if more earnings are available than are needed to support the optimal capital budget. o o O