Southern Cities Trucking Company has the following five year record of earning per share.

Year EPS

2015 $1.40

2016 $2.10

2017 $1.00

2018 $3.25

2019 $0.80

Which of the following procedures would produce higher dividends to stockholders over this five year period?

1. Paying out dividends at a fixed ratio of 50% of EPS
2. Paying out dividends at a fixed rate of $1 per share