After reading this article you will learn about the Advantages and Disadvantages of Stable Dividend Policy. Advantages of Stable Dividend Policy: A stable dividend policy is advantageous to both the investors and the company on account of the following: (a) It is sign of continued normal operations of the company. (b) It stabilises the market value of shares. (c) It [...]
This article throws light upon the two main concepts of dividend. The concepts are: 1. The Irrelevance Concept of Dividend 2. The Relevance Concept of Dividend. Concept # 1. The Irrelevance Concept of Dividend: A. Residual Approach: According to this theory, dividend decision has no effect on the wealth of the shareholders or the prices of the shares, and hence [...]
This article throws light upon the top four legal and procedural aspects of payment of dividend. The legal and procedural aspects are: 1. Source of Declaring Dividend 2. Transfer to Reserves 3. Declaration of Dividend out of Past Profits or Reserves 4. Other Provisions and Aspects of Payment of Dividend. Legal and Procedural Aspects of Payment of Dividend: Source of [...]