What are we talking about? The company's dividend policy determines the procedure for paying out shares to shareholders, including their volume and regularity. The same document regulates whether dividends will be paid in securities or whether shareholders will receive cash.
What is it? There are several types and kinds of dividend policy. The main difference between them is what amount of funds will be allocated for dividends. Each business must find its own balance in this matter.
The article explains:
The concept of usages of car owner database dividend policy
Structure of the dividend policy statement
Objectives and tasks of dividend policy
Types and kinds of dividend policy
Factors influencing the formation of dividend policy
Dividend policy for different types of shares
Stages of dividend policy formation
Factors Affecting Dividend Amount
Approaches to the analysis of the company's dividend policy
Examples of dividend policies of Russian companies
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The company's dividend policy is determined individually in each case. Some companies adhere to the approach in which shareholders receive a larger share of the profit. Other companies pay on a residual basis. In our material, we will tell you how to make dividend payments as effective as possible for the company itself.
The concept of dividend policy
The profit that remains with the company after paying all expenses can be used in one of two mutually exclusive ways. The first is investing in the further development of the enterprise, expanding production, increasing wages, etc. The second is paying dividends to shareholders.
It is clear that investors are more interested in the second option. Each joint-stock company issues a document on the procedure for paying dividends, which is posted on the company's official website.
The concept of dividend policy
Issues concerning the periodicity, grounds, amount, and form of payment of this portion of the profit are established in the dividend policy (DP). It is formed for different periods and approved by the board of directors of the joint-stock company.
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The powers of this management body include determining the amount of dividends. Such a decision is advisory in nature and is submitted for discussion to the general meeting of shareholders. It may approve this choice, as well as reduce the amount of payments or cancel them altogether, but not increase the amount.
In addition, the general meeting determines the list of persons who have the right to participate in the distribution of profits. The date of the final compilation of such a list is called the dividend cutoff; all shareholders who are included in this document at