Factors Affecting Dividend Decisions

ABC Corporation is a well-established firm in the technology sector. Recently, the board of directors announced a suspension of its quarterly dividend payments, citing a need to conserve cash for upcoming strategic investments in research and development. Analysts are divided on the impact of this decision. Some argue that suspending dividends can negatively affect the company’s stock price and affect investor sentiment, while others suggest that reinvesting cash into innovation can lead to greater long-term profitability.

Considering ABC Corporation’s current financial health, its cash flow stability, and potential growth opportunities, what is the primary factor that affects the company's ability to maintain or suspend dividend payments?