Day: March 25, 2020

According to Walter, the choice of the dividend policy almost always affects the value of the company. According to him, the dividend policy of the companies must be framed by keeping in mind the availability of new investment opportunities. If the company has abundant profitable investment opportunities, no cash dividends should he paid because retained earnings will be a source Read More …

The dividend policy comprises all aspects of dividend payments such as stability of dividend rate, time of payment, methods of payment, forms of payments etc. while formulating dividend policy covering all these aspects, one has to carefully study not only the company’s requirement but also the interest of shareholders. Some other economic factors must also be considered. Thus factors affecting Read More …

Dividend policy determines the allocation of earnings payable to shareholders and earnings to be retained. The market value of shares of a company is greatly affected by its policy regarding the distribution of profits/surplus between pay-out (dividend) and plough-back (retained earnings). Dividend policies can be of following types Constant Percentage of Earnings: a company may distribute dividends to its shareholders Read More …

Dividend refers to the business concerns net profits distributed among the shareholders. It may also be termed as part of the profit of a business concern, which is distributed among its shareholders. According to the Institute of Chartered Accountant of India, the dividend is defined as “a distribution to shareholders out of profits or reserves available for this purpose”. TYPES Read More …