Companies with a higher growth pattern are likely to:

Pay lower dividends

The correct answer is Option (2)- Pay lower dividends.

Companies with a higher growth pattern are likely to pay lower dividends.

Companies with a higher growth pattern typically reinvest their profits into the business to fund expansion, research and development, or new projects. As a result, they often pay lower dividends or no dividends at all. This strategy allows them to capitalize on growth opportunities instead of distributing profits to shareholders.

In contrast, mature companies with slower growth might pay higher dividends to shareholders since they have fewer investment opportunities and excess profits that can be distributed.