A firm that follows a strict residual dividend policy is likely to maintain a stable pattern of dividends over time.

Strict Residual Dividend

A dividend policy under which dividends are paid from the residual or leftover equity only after all project capital needs are met, prioritizing investment over dividends.

Stable Pattern

A stable pattern indicates consistent and predictable behavior or trends over a period of time.

Dividends Over Time

The cumulative dividends paid out by a corporation to its shareholders over a period, reflecting the company's profitability and policy on profit distribution.