Stock dividends are commonly used for all except: to camouflage the inability of the corporotion to pay cash dividends by growth firms as a form of information content for reinvestment. to fend off hostile takeovers. to create employee loyalty. Inflation can affect dividend payouts in that: Multiple Choice corporations are hesitant to pay dividends from inflation-caused "inventory profits." inflation leads investors to demand higher payouts. dividend payouts decrease due to slower earnings growth in an inflationary economy. higher interest rates resulting from inflation have left more earnings available for dividends