Constant payout policies have the drawback of making dividends low or nonexistent if a company experiences a decline in earnings or a loss during a particular period.
A dividend policy with a continual dividend payout ratio is one in which the portion of earnings distributed as dividends is constant. In other words, a continual dividend ratio policy keeps the dividends paid to shareholders at the same percentage of earnings.
You can determine the dividend payout ratio by dividing the annual dividend per share by the per-share earnings or by dividing the dividends by net income.
To know more about continual dividend ratio policy visit:
https://brainly.com/question/16944397
#SPJ4
