Dividend refers to that portion of profit (after-tax) which is distributed among the owners or shareholders of the firm. The finance manager has to take few decisions which are inter-related like investment, financing and dividend decisions. Dividend decision is related to the shareholders' expectation from the shareholder's share in the profits of the company. The focus of the dividend decision [...]
Some of the factors affecting dividend policy of a firm or company or business are as follows: 1. Stability of Earnings 2. Financing Policy of the Company 3. Liquidity of Funds 4. Dividend 5. Policy of Competitive Concerns 6. Past Dividend Rates 7. Debt Obligations 8. Ability to Borrow 9. Growth Needs of the Company; 10. Profit Rate 11. Legal [...]
This article throws light upon the top thirteen determinants of dividend policy. The determinants are: 1. Legal Restrictions 2. Magnitude and Trend of Earnings 3. Desire and Type of Shareholders 4. Nature of Industry 5. Age of the Company 6. Future Financial Requirements 7. Government's Economic Policy 8. Taxation Policy 9. Inflation 10. Control Objectives and Others. Determinant # 1. [...]