Typically, all other things equal, a profitable company that pays relatively high dividends:
A) is an attractive investment for those seeking a steady income, like retired people.
B) will reinvest more profit which can lead to smaller growth potential.
C) will experience more growth in stock price over time.
D) is a bad investment.

Question

Quizplus · Accepted Answer

A profitable company that pays relatively high dividends is an attractive investment for those seeking a steady income, like retired people. This is because they can receive a regular cash flow from the dividend payments. However, this does not necessarily mean that the company will experience more growth in stock price over time or that it is a bad investment. The decision to invest in a company should consider various factors, including the company's financials, management, and market conditions.

Typically, All Other Things Equal, a Profitable Company That Pays