Dividend policy: what it is and how to choose the right one
Posted: Thu Jan 23, 2025 3:39 am
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 dividend policy
Structure of the dividend policy statement
Objectives and moj database 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 the relevant time have the right to receive their share of the payments.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
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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 dividend policy
Structure of the dividend policy statement
Objectives and moj database 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
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
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.
Read also!
"USP examples to help you come up with your own that's even better"
Read more
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 the relevant time have the right to receive their share of the payments.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153357