answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What are the disadvantages of a stable dividend policy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Definition of stable dividend policy?

Dividend policy is a set of rules that a company uses to determine how much of its earnings it will pay to shareholders. Stable dividend policy means all payments are equal.


What are the advantages and disadvantages of a stable dividend policy?

Stable dividend policy has following advantages: 1. It creates confidence among shareholders; 2. Stabilizes the market value of share of the company; 3. It helps in marinating the goodwill of the company; 4. Helps in giving regular income to the shareholders. Disadvantage: (well I am also looking for disadvantages so if anybody knows the answer then plz reply)


One key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy is that true?

No, that statement is not true. A residual dividend policy does not aim to maintain a stable dividend, but instead distributes dividends based on the residual earnings left after the company has financed all capital projects and met its financial obligations. This means that the dividend amount can vary depending on the company's earnings and cash flow, rather than following a stable dividend policy.


Advantages and disadvantages of dividend policy?

The advantages of dividend policies are that they provide an outline of what the investor can expect from the company regardless of what the policy is. Stable dividends are typically preferred over fluctuating dividends. The main disadvantage of dividend policies is that is they are too generous, the company may struggle and if they attempt to reduce the dividend then investor's can become disenchanted as it is considered a cut in pay.


What is small constant dividend per share plus extra dividend policy?

A policy of paying a low regular dividend plus a year-end extra in good years is a compromise between a stable dividend and a constant payout rate.This policy gives the firm flexibility.


What is Stable dividend policy?

It is that policy which has stable payout ratio.By Parul KhannaStable Dividend Policy?Stabile dividends have a positive impact on the market price of shares. If dividends are stable it reduces the chance of speculation in the market and investors desiring a fixed rate of return will naturally be attracted towards such securities. Stability of dividend means either a constant amount per shares or a constant percentage of net earnings.pradeepkalari (pradeep sp)


What is the concept of dividend policy in multinational firms?

concept of dividend policy


Which are the fluctuating dividend policies?

this policy is that policy which is fluctuating in nature and the shareholders do not generally go for this dividend policy.


What is dividend policy?

nd policy


The difference between a passive and an active dividend policy.?

The difference between a passive and an active dividend policy lies in the amount of time between dividend disbursement. In a passive dividend policy, dividends are given when the company decides it is time. With an active dividend policy, dividends are disbursed at regular intervals.


How do you envisage your role as a Finance Manager in matters related to dividend policy What are the alternatives and factors that you may consider before finalizing your views on dividend policy?

as finance manager what is your role in matter of dividend policy.


A policy of dividend smoothing refers to?

setting a dividend price that does not necessarily conform with retained earnings