TYPES OF DIVIDEND POLICY

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 …

TYPES OF DIVIDEND/FORMS OF DIVIDEND

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 …