Most companies pay a fixed quarterly dividend to give their investors visibility into their income. However, some companies have found that paying a fixed dividend doesn't work for their business models because their cash flows vary. That has led them to institute variable dividends that better align their payouts with cash flows. 

One of the drawbacks of variable dividends is that they decline with a company's cash flows. That has been the case for Blackstone (NYSE: BX) and Devon Energy (NYSE: DVN) this year. However, those payouts could reverse course and rocket higher next year. Here's what could give them the fuel to rebound. 

Blackstone has two revenue sources. The leading alternative asset manager generates recurring fee-related earnings from management and advisory fees. In addition, it records performance revenue as the investment funds it manages realize returns by monetizing investments. Those realizations can be lumpy, depending on market conditions. 

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Source Fool.com