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Explain the Following as Factor Affecting Dividend Decision: Stability of Dividends - Business Studies

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ConceptFinancial Decisions - Financing and Dividend

Question

Explain the following as factor affecting dividend decision:

Stability of dividends

Solution

Stability of dividends: Generally, companies try to stabilise their dividends such that there is not much fluctuation in the dividends they distribute. They opt for increasing dividends only when there is a consistent increase in earnings.

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Solution Explain the Following as Factor Affecting Dividend Decision: Stability of Dividends Concept: Financial Decisions - Financing and Dividend.
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