Dividend policy


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Dividend policy

Standards by which a firm determines the amount of money it will pay as dividends.

Dividend Policy

The amount of a dividend that a publicly-traded company decides to pay out to shareholders. The dividend policy may change from time to time. Factors affecting a dividend policy include the company's earnings for the relevant period and its expected performance in the near future. Many companies, especially startups, have a rather stingy dividend policy because they plow back much of their earnings into further development. Established companies, such as blue chips, tend to have relatively liberal dividend policies. However, some research, notably Miller and Modigliani's irrelevance proposition, suggests that a company's dividend policy does not impact its performance in any way. See also: Dividend clientele, Signaling approach (on dividend policy).
References in periodicals archive ?
Broadcom's cash dividend policy and the payment of future cash dividends under that policy are subject to the board's continuing determination that the dividend policy and the declaration of dividends are in the best interests of Broadcom's shareholders and are in compliance with all laws and agreements of Broadcom applicable to the declaration and payment of cash dividends.
The dividend policy may be changed or canceled at the Company's discretion at any time.
Prior studies that have investigated the determinants of dividend policy in the United Kingdom found numerous firm characteristics such as profitability, size, investment opportunities, gearing, cash flow and liquidity, to be the main associative factors in determining the payment and omission of UK dividends.
Dividend policy has long been a subject of interest to financial researchers, and it has still remained as controversial topic in the field of financial management.
In light of the deterioration in the earnings prospects of the conventional electricity generation business, the Executive Board of RWE AG decided in its meeting today to adjust the company s dividend policy.
Cypress's dividend policy and the payment of cash dividends under that policy are subject to the Board's continuing determination that the dividend policy and the declaration of dividends are in the best interests of Cypress's stockholders and are in compliance with all laws and agreements of Cypress applicable to the declaration and payment of cash dividends.
Global Banking News-January 28, 2013--CEO says Zurich's dividend policy unchanged(C)2013 ENPublishing - http://www.
EVENT: Halyk Savings Bank of Kazakhstan (HSBK) released a press statement informing on the adoption of a dividend policy.
The Board of Directors of the Company announces an amendment to the current published dividend policy of the Company which will allow it to pay such interim dividends as appear to the Board to be justified by the financial position of the Company at the relevant time.
The traditional approach to evaluating dividend policy centers on how the payment of dividends ultimately affects a firm's stock price.
said, "The management and Board of Directors of Cal-Maine believe a variable dividend policy more accurately reflects the results of our operations while recognizing and allowing for the cyclicality of the egg industry.
The company's dividend policy and future dividend payment considerations.