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Higher dividend per share is associated with?

Posted by Meet Patel 3 years, 11 months ago

CBSE > Class 12 > Business Studies

1 answers

Gaurav Seth 3 years, 11 months ago

Ans: High Earning, High Cash Flows, Stable Earnings and Lower Growth Opportunities
Explanation:
There are two primary causes for increases in a company’s dividend per share payout.
The first is simply an increase in the company's net profits out of which dividends are paid.
The second is a shift in the company’s growth strategy that leads the company to decide to expend less of its earnings in seeking growth and expansion, thus leaving a larger share of profits available to be returned to equity investors in the form of dividends.

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