Chartered Financial Analyst Level 2

Explanation

Option C is correct - the percentage of companies paying dividends has generally decreased over time.

Global trends in payout policies:

• Option C (Correct): The percentage of companies paying dividends has declined globally as more companies, particularly in technology and growth sectors, choose to retain earnings for reinvestment rather than pay dividends
• Option A: Dividend payout ratios have not consistently decreased; they vary by market conditions and company characteristics
• Option B: Aggregate dividend amounts have generally increased over time, driven by larger companies paying larger dividends

This trend reflects the shift toward share repurchases as an alternative method of returning capital to shareholders, and the increasing number of growth-oriented companies that prefer to reinvest earnings rather than pay dividends.