Why is a dividend payout ratio above 100% generally considered unsustainable?

• A. It indicates the company is reinvesting all earnings back into the business.
• B. It means the company is experiencing high growth.
• C. It suggests the company is using debt to pay dividends.
• D. It indicates the company is paying more in dividends than it earns, which is unsustainable long-term.

Answer: (D)