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Dividend practices In general, firms' dividend practices fit into the categories listed in the following table ( constant payout ratio, low - regular - dividend
Dividend practices
In general, firms' dividend practices fit into the categories listed in the following table constant payout ratio, lowregulardividendplusextras, residual dividend policy, and stable, predictable dividend policies
Identify the category that each practice corresponds to in the table.
tablePracticetableConstantPayout RatiotableLowRegularDividendPlusExtrastableResidualdividendtableStablePredictableDividendtableTobotics Inc. pays dividends only if more earnings are availablethan are needed to support the optimal capital budget.tableUniversal Drugmakers Inc.s investors like the firm's dividendpolicy because the firm pays the same dividend every year nomatter how the firm performs.tableOmni Consumer Products Co always pays the same percentageof its annual net income as dividends.
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