this policy is that policy which is fluctuating in nature and the shareholders do not generally go for this dividend policy.
A postmortem dividend is a payment made to the beneficiaries of a life insurance policy or an estate after the policyholder has passed away. It typically represents the accumulated dividends or profits that were not distributed during the policyholder's lifetime. This dividend is usually paid out as part of the claims process, after the necessary documentation is submitted to the insurance company or estate executor. The amount is determined based on the policy’s terms and the insurer's performance.
Shareholders who prioritize capital gains over immediate income typically have no interest in dividend policy. These investors focus on the company's growth potential and value appreciation rather than regular dividend payouts. Additionally, firms in high-growth sectors, like technology, often attract investors who prefer reinvested earnings to fuel expansion instead of distributing dividends.
DividendsDividends are payments made to stockholders from a firm's earnings, whether those earnings were generated in the current period or in previous periods. Dividend PolicyOnce a company makes a profit, management must decide on what to do with those profits. They could continue to retain the profits within the company, or they could pay out the profits to the owners of the firm in the form of dividends.Once the company decides on whether to pay dividends they may establish a somewhat permanent dividend policy, which may in turn impact on investors and perceptions of the company in the financial markets. What they decide depends on the situation of the company now and in the future. It also depends on the preferences of investors and potential investors.
The fifth dividend option typically refers to a specific choice available to shareholders regarding how they receive their dividends, often related to reinvestment plans or alternative compensation methods. Instead of cash payments, shareholders may opt to reinvest dividends into additional shares of the company, potentially increasing their overall investment. This option can be beneficial for long-term growth, as it allows for compounding returns over time. The exact details of the fifth dividend option can vary by company and its dividend policy.
James E. Post has written: 'Research in Corporate Social Performance and Policy: Corporate Social Policy' 'Business and society' -- subject(s): Social responsibility of business 'Contemporary business issues' -- subject(s): Social responsibility of business 'Research in Corporate Social Performance and Policy: A Research Annual' 'Research in Corporate Social Performance and Policy'
it suggest that dividend has an impact on share price because they communicate information, signals about the firms profitability.
concept of dividend policy
this policy is that policy which is fluctuating in nature and the shareholders do not generally go for this dividend policy.
nd 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.
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.
as finance manager what is your role in matter of 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.
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)
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.
setting a dividend price that does not necessarily conform with retained earnings