Southern Cities Trucking Company has the following 5-year record of earnings per share.

Year EPS ($)

2009 ........1.40

2010 ........2.10

2011 ........ 1.0 0

2012 ........3.25

2013 ........0.80

Which of the following procedures would produce higher dividends to stockholders over this 5-year period?

a. Paying out dividends at a fixed ratio of 40% of EPS

b. Paying out dividends at a fixed rate of $1 per share