Stocks with ____ dividend yield often indicate ____ expected future growth.
A) high; high
B) low; low
C) low; high
D) high; low

Question

Quizplus · Accepted Answer

Stocks with low dividend yield often indicate high expected future growth. This is because companies that are focused on growth tend to reinvest their earnings back into their business rather than pay out dividends to their shareholders. As a result, their dividend yield tends to be lower but their potential for future growth is higher.

Stocks with ____ Dividend Yield Often Indicate ____ Expected Future

Stocks with Dividend Yield Often Indicate Expected Future