The correct answer is Refrain. Key Points Both refrain and abstain are synonyms meaning 'Resist doing something' and are also correct grammatically. "He refrained from hitting him back" Avoid is correct in terms of meaning but incorrect grammatically. Avoid here should be followed by paying directly without the word from in between. Hence, this is incorrect. "He should avoid publishing his wife's memories" Hence, the word 'Abstain' should be replaced with 'Refrain' to form a contextually correct sentence. It should read as: When companies need to save money, they refrain from paying a dividend. Additional Information ​ Let us understand the meaning of the other options: Avoid: Refrain from doing something Abstract: Not representing or imitating external reality or the objects of nature Laze: Be idle; exist in a changeless situation Idle: Without a basis in reason or fact