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 ?
North American Construction Group announced that its board has approved a change to its dividend policy whereby the company's regular dividend will be increased to CDN 16c per common share per year, payable on a quarterly basis, up from the current CDN 8c per year.
Eisai strive for an 'optimal dividend policy based on an optimal capital structure' that depends on long-term balance sheet management.
M2 EQUITYBITES-May 10, 2019-Pandox decides on new dividend policy
Saeed Al Rashdi and Deputy CEO, John Carey along with other senior management discussed the recently announced progressive new dividend policy as well as reiterating their confidence in the Company's strong growth prospects and cash flow generation ability going-forward.
The Board of Directors of PJSC "LUKOIL" (hereinafter the Company) approved amendment to the Regulations on the Dividend Policy of PJSC "LUKOIL" (hereinafter the Regulations).
With this background, there is reason to believe that CBs and IBs differ in the way they set their financial policies including, among others, the dividend policy. There is also reason to believe that they responded differently to the recent global financial crisis that started in 2008.
Ownership structure and dividend policy have been the debatable financial issue for the firms over the last few decades.
SMFB said its liquidity and leverage profiles remained stable and attractive, allowing the company to set a cash dividend policy of up to 60 percent of the prior year's recurring net income.
The company intends to maintain its long-standing dividend policy to its shareholders in FY 2018 and beyond.
Dividend policy is thought as a complex data which to be passed to the shareholders in returning their investments made beforehand.
Based on these expectations, analysts and Samsung C and T said it came out with a "surprising" dividend policy.
Relevant works highlighted the importance of dividend policy under distinct theoretical frameworks and gave rise to a prominent body of research (Black, 1976; Lintner, 1956; Miller & Modigliani, 1961).