Listed below are selected financial data for three corporations: Honeywell International, Inc. (environmental controls), The Dow Chemical
Question:
Listed below are selected financial data for three corporations: Honeywell International, Inc. (environmental controls), The Dow Chemical Company (chemicals and plastic products), and Abbott Laboratories (health care products). These data cover five years (Year 5 is the most recent year; net income in thousands):
Required
a. Calculate the dividend payout ratio for each company for each of the five years.
b. Companies may differ in their dividend policy; that is, they may differ in whether they emphasize a constant dividend amount per share, a steady growth in dividend amount per share, a target or constant dividend payout ratio, or some other criterion. Based on the data available, identify what appears to be each of the above firm's dividend policy over the five-year period.
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