Explain how an announced increase in a firms dividend payout might be perceived as either a good

Question:

Explain how an announced increase in a firm’s payout might be perceived as either a good or a bad information signal.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...