In the aggregate and over a long period of time ________.
A)earnings grow faster than dividends
B)earnings and dividends grow at a similar pace
C)earnings grow more slowly than dividends
D)dividend payments exceed earnings

Question

Quizplus · Accepted Answer

Studies have shown that over a long period of time, earnings and dividends tend to grow at a similar pace. This supports the argument for investing in dividend-paying stocks as they provide both income and potential for capital appreciation. However, in the short term, earnings growth may outpace dividend growth or vice versa.

In the Aggregate and Over a Long Period of Time