Definition of stable dividend policy?


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2014-06-04 23:35:57
2014-06-04 23:35:57

Dividend policy is a set of rules that a company uses to determine how much of its earnings it will pay to shareholders. Stable dividend policy means all payments are equal.

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A policy of paying a low regular dividend plus a year-end extra in good years is a compromise between a stable dividend and a constant payout rate.This policy gives the firm flexibility.

It is that policy which has stable payout ratio.By Parul KhannaStable Dividend Policy?Stabile dividends have a positive impact on the market price of shares. If dividends are stable it reduces the chance of speculation in the market and investors desiring a fixed rate of return will naturally be attracted towards such securities. Stability of dividend means either a constant amount per shares or a constant percentage of net earnings.pradeepkalari (pradeep sp)

it is when the revenue is dividend

The advantages of dividend policies are that they provide an outline of what the investor can expect from the company regardless of what the policy is. Stable dividends are typically preferred over fluctuating dividends. The main disadvantage of dividend policies is that is they are too generous, the company may struggle and if they attempt to reduce the dividend then investor's can become disenchanted as it is considered a cut in pay.

The difference between a passive and an active dividend policy lies in the amount of time between dividend disbursement. In a passive dividend policy, dividends are given when the company decides it is time. With an active dividend policy, dividends are disbursed at regular intervals.

Stable dividend policy has following advantages: 1. It creates confidence among shareholders; 2. Stabilizes the market value of share of the company; 3. It helps in marinating the goodwill of the company; 4. Helps in giving regular income to the shareholders. Disadvantage: (well I am also looking for disadvantages so if anybody knows the answer then plz reply)

a number by which another number, the dividend, is divided.

setting a dividend price that does not necessarily conform with retained earnings

Jollibee has paid shareholders only 1 dividend in the company's history.

Dividend policy is the set of rules a business uses to determine how much of its earnings will go to shareholders. Features include equity, income, expenses and overall profit.

it suggest that dividend has an impact on share price because they communicate information, signals about the firms profitability.

Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.

a policy to do with an empire.

Zero dividend policy refferes to the policy of share holders being sucked off hard by the director and agreeing not to pay dividends. This is then followed by an entry through the "back door" as they say, with some anal bleeding. Some may say this is the best dividend policy as all parties benefit in some sort of way, whether it be in the mouth or through the tight little whole.

Types of Dividend Policy:a. Stable Dividend Policyb. Fluctuating Dividend Policyc. Small Constant Dividend per Share plus Extra Dividend.Forms of Dividend· Cash DividendCash dividends(most common) are those paid out in the form of a cheque. Such dividends are a form of investment income and are usually taxable to the recipient in the year they are paid.This is the most common method of sharing corporate profits with the shareholders of the company. For each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the cash dividend is $0.50 per share, the person will be issued a cheque for 50 dollars.· Stock DividendStock or scrip dividends are those paid out in form of additional stockshares of the issuing corporation, or other corporation (such as itssubsidiary corporation).They are usually issued in proportion to sharesowned (for example, for every 100 shares of stock owned, 5% stockdividend will yield 5 extra shares). If this payment involves the issue ofnew shares, this is very similar to a stock split in that it increases the totalnumber of shares while lowering the price of each share and does notchange the market capitalization or the total value of the shares held.

A dividend is nothing but a periodic sharing of profit by the company with its share holders. The dividend is usually declared as a % of the face value of the share. A 100% dividend on a share with a face value of 1$ means you would get $1 for every share of that company you hold.

By definition. If it were stable, then it would not be radioactive.

There are many different factors that affect business policy. These different factors range from shareholders to the dividend policy of a certain business.

It's a payment made to the policy owner by the mutual insurance company when there is a profit. The policyholders are the owners of a mutual life insurance company and they share in the profits by receiving dividend payments from the insurance company.

No, the definition of ex-dividend date is trading without the dividend. Any stock purchased "ex-dividend" date is not entitled to the dividend. AND equally as importantly OFFSETTING this - is the insatnt that happens the stock price is reduced by the amiunt of the dividend being paid. NO you cannot "steal" a dividend - that is buy it the day before the divideden gets paid (or ownership date actually) - and sell the day after - all you do is get the dividend and the equally lower stock value.

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