Asked by Miriam Petit on Jul 05, 2024
Verified
Which industry would you expect to find the highest dividend payout yields?
A) biotech
B) technology
C) electric utility
D) business software
Dividend Payout Yields
The ratio of a company's annual dividends per share to its share price, indicating the amount of dividend income generated by each dollar invested.
- Recognize the variables contributing to the profitability of firms and the growth of economic activity.
Verified Answer
DA
Djigbodi AGBEMADONJul 12, 2024
Final Answer :
C
Explanation :
Electric utilities are typically considered a defensive industry, meaning they are less vulnerable to economic downturns. They also have relatively steady cash flows and often have a regulatory environment that allows for stable and predictable profits, enabling them to pay higher dividends to shareholders.
Learning Objectives
- Recognize the variables contributing to the profitability of firms and the growth of economic activity.