Differentiate between the following: Regular dividend policy and Stable dividend policy

Regular dividend policy: In Regular dividend policy the investors get dividend at usual rate. Here, the investors are usually persons who want to get regularly incomes. This type of dividend payment can be maintained only if the company has regular earning. Merits of Regular Dividend Policy: It helps in creating confidence among the shareholders. It stabilizes the market value of shares. It helps in maintaining the goodwill of the company. It helps in giving regular income to the shareholders. Stable dividend policy: Here the payment of certain sum of money is regularly made to the shareholders. Constant dividend per share, Constant payout ratio, Stable rupee dividend plus extra dividend are the types of Stable dividend policy. Merits of stable dividend policy: It helps in creating confidence among the shareholders. It stabilizes the market value of shares. It helps in maintaining the goodwill of the company. It helps in giving regular income to the shareholders.