[Verse 1] When companies make profits and they're doing really well They face a choice that matters, got a story here to tell Should they pay the same amount each quarter through the year Or tie it to their earnings when the numbers aren't so clear [Chorus] Stable pays the same, constant changes with the game Stable dollars never waver, constant percentage is the player Stable keeps it steady, constant's earnings-ready Two ways to share the wealth, pick the policy for your health [Verse 2] Stable dividend policy means dollars stay the same Two dollars every quarter, playing a consistent game Investors love the certainty, they budget what they'll get But when earnings take a dive, the company might fret [Chorus] Stable pays the same, constant changes with the game Stable dollars never waver, constant percentage is the player Stable keeps it steady, constant's earnings-ready Two ways to share the wealth, pick the policy for your health [Verse 3] Constant payout ratio takes a different kind of route Thirty percent of earnings is what they'll dish out When profits climb up high, the dividends will too But when the earnings stumble, payments shrink on cue [Bridge] Stable means predictable cash flow every time Constant means the payouts move with profit's climb Stable might cut ratios when earnings fall apart Constant keeps percentages steady from the start [Chorus] Stable pays the same, constant changes with the game Stable dollars never waver, constant percentage is the player Stable keeps it steady, constant's earnings-ready Two ways to share the wealth, pick the policy for your health [Outro] Choose your dividend strategy, there's wisdom in both ways Stable for the certainty, constant for the pays That move with company fortune, rising with success Both have their advantages, now you know what's best
← Clientele Effect and Dividend Signaling | Residual Dividend Policy →