The correct answer is: The level of other payables.

While the level of other paybles will impact upon the cash forecast for the company, and therefore the liquidity position, it is not a factor that will normally have a direct influence on the directors' decision.

The directors must comply with the law to ensure that only profits available for distribution are paid out as dividends.

Investors usually expect a consistent dividend policy from the company, with stable dividends each year or, even better, steady growth in dividends.

Dividends are a cash payment, and a company must have enough cash to pay the dividend it declares.