Practice constant payout ratio low-regular-dividend- plus-extras residual dividend stable, predictable dividend omni consumer products co. always pays the same percentage of its annual net income as dividends. st. mildred’s brewing co. pays dividends only if more earnings are available than are needed to support the optimal capital budget. business logistics corp. has volatile earnings and cash flows, so it pays a small dividend every year and then pays additional dividends in good years. universal drugmakers inc.’s annual dividends increase by the same amount, or percentage, every year.