Factors Impacting XYZ Corporation's Dividends

In the context of corporate finance, understanding the factors that can influence a company's decision to pay dividends is crucial for investors. XYZ Corporation, a publicly traded firm, has recently experienced notable shifts in its profitability and growth opportunities. Historically, the company has maintained a steady dividend policy, but management is now considering a change in their approach to dividends. Some management members argue that high retained earnings should allow for reinvestment, while others argue for increasing dividend payouts to satisfy shareholders looking for income.

Considering these aspects, which of the following factors is most likely to have a significant impact on XYZ Corporation's ability to pay dividends in the next fiscal year?