A strict residual dividend policy:

	a.	guarantees that a minimal amount will be paid as a dividend on a quarterly basis.
	b.	is best suited to cyclical firms who prefer steady dividends.
	c.	tends to produce higher dividend payout ratios for high-growth firms versus low-growth firms.
	d.	tends to produce steady, predictable dividend payments.
	e.	adds considerable uncertainty to the payment of future dividends.