Factors Leading to Dividend Increases in Tech Innovations Inc.

A company, Tech Innovations Inc., is evaluating its dividend policy due to recent changes in its financial health and market conditions. Over the past year, the company has experienced a drastic increase in sales of its flagship product, driving substantial cash flow improvements. However, it is also facing increasing competition and has plans to invest heavily in research and development (R&D) to maintain its market position.

The board of directors is discussing whether to increase the current dividend payout, maintain it at the current level, or implement a share repurchase plan. Their decision will depend on various factors, including their view on sustainable earnings growth, long-term capital needs, and investor expectations.

Which of the following factors is most likely to lead to an increase in dividends paid to shareholders in the context of Tech Innovations Inc.?