Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is meant by dividend policy? What is its significance in analyzing a portfolio of investments?

user-image
Question ajoutée par Remya Mohandas
Date de publication: 2016/03/22
Frank Mwansa
par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

 A  company 's shareholders are the most important capital suppliers to the firm and financial decision making is aimed towards maximising their wealth. One of the important financial decisions made within a company is it dividend policy.

 Dividend policy  is the strategy  is a strategy a company uses to transfer cash to its shareholders. It relate to the determination of how much and how frequently cash can be paid out of the profits of an entity as income for the shareholders

SIGNIFICANCE

Dividend policy is seen a signal from the company to the financial markets and shareholders. investors perceive announcements as signals of future prospects for the entity.

 

More Questions Like This