Tag Archives | Dividend Policy

Meaning and Types of Dividend Policy | Financial Management

After reading this article you will learn about the Meaning and Types of Dividend Policy. Meaning of Dividend Policy: The term dividend refers to that part of profits of a company which is distributed by the company among its shareholders. It is the reward of the shareholders for investments made by them in the shares of the company. The investors [...]

By |2016-06-28T09:22:36+05:30June 28, 2016|Dividends|Comments Off on Meaning and Types of Dividend Policy | Financial Management
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Dividend Policy in Practice (With Calculations)

The main consideration in determining the dividend policy is the objective of maximisation of wealth of shareholders. Thus, a firm should retain the earnings if it has profitable investment opportunities, giving a higher rate of return than the cost of retained earnings, otherwise it should pay them as dividends. It implies that a firm should treat retained earnings as the [...]

By |2016-06-28T09:22:35+05:30June 28, 2016|Dividends|Comments Off on Dividend Policy in Practice (With Calculations)
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