What are the main types of dividends?
Cash – this is the payment of actual cash from the company directly to the shareholders and is the most common type of payment. The payment is usually made electronically (wire transfer), but may also be paid by check or cash. Stock – stock dividends are paid out to shareholders by issuing new shares in the company.
What is dividend/distribution policy?
The Dividend Distribution Policy (“the Policy”) establishes the principles to ascertain amounts that can be distributed to equity shareholders as dividend by the Company as well as enable the Company to strike balance between pay- out and retained earnings, in order to address future needs of the Company.
What are dividends What are the types of dividends and factors affecting the dividend policy?
A company is raising funds from different sources, it includes debentures, preference shares and equity shares. Payment to debenture holders and to preference share holders are at a fixed rate. There are various types of dividend policies – regular, stable, constant and irregular. …
What is passive dividend policy?
Passive dividends are money one earns with little or no effort. Examples of passive dividends are rent, interests, or even winning.
What is dividend policy Slideshare?
INTRODUCTION TO DIVIDEND POLICY The dividend policy of a firm determines what proportion of earnings is paid to shareholders by way of dividends and what proportion is ploughed back in the firm for reinvestment purposes.
What is the dividend briefly explain the different dividend theories?
This theory states that dividend patterns have no effect on share values. Broadly it suggests that if a dividend is cut now then the extra retained earnings reinvested will allow futures earnings and hence future dividends to grow.
What is final dividend?
A final dividend refers to the dividend declared by a company’s board of directors after the company has issued its full-year financial statements. The final dividend payment is a fixed amount per share of common stock, and is typically made known to the public during the annual shareholders’ meeting.
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