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.
concept of dividend policy
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.
setting a dividend price that does not necessarily conform with retained earnings
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.
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.
concept of dividend policy
this policy is that policy which is fluctuating in nature and the shareholders do not generally go for this dividend policy.
nd policy
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.
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.
as finance manager what is your role in matter of dividend policy.
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.
No, that statement is not true. A residual dividend policy does not aim to maintain a stable dividend, but instead distributes dividends based on the residual earnings left after the company has financed all capital projects and met its financial obligations. This means that the dividend amount can vary depending on the company's earnings and cash flow, rather than following a stable dividend policy.
setting a dividend price that does not necessarily conform with retained earnings
Jollibee Foods Corporation has a dividend policy that aims to distribute a minimum of 30% of its annual net income to its shareholders. The company has a history of consistent dividend payments and a commitment to providing shareholders with returns on their investment. Jollibee's dividend policy is guided by its aim to balance capital reinvestment for growth and rewarding shareholders through dividend distributions.
i dnt know the answer.......sorry
it suggest that dividend has an impact on share price because they communicate information, signals about the firms profitability.