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 ?
Based on these expectations, analysts and Samsung C and T said it came out with a "surprising" dividend policy.
Dividends are returns to shareholders for their investment in firms and the dividend policy is a set of guidelines that a firm uses to decide how much cash to give to its shareholders in the form of dividends.
The empirical research was conducted in the investigation of the dividend policy and related agency problem which arises between Management and Owners of the firm.
Teck Resources Limited (Teck") announced that Tecks Board of Directors has established a new dividend policy, and in accordance with that policy Teck will pay on June 30, 2017 an initial eligible dividend of $0.
M2 EQUITYBITES-April 3, 2017-Betsson's board changes dividend policy
NORDIC BUSINESS REPORT-April 3, 2017-Betsson's board changes dividend policy
Dividend policy and stock volatility are the major contents in corporate finance.
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.
Dividend policy can be defined as determining the method which provides the basis for whether profits will be withheld, shared or used for other purposes.
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.
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.