In extension, raising the number of excellent shares reduces the stock price, making the stock more reasonable for retail investors. PDF. Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage. Dividend policy provides as a base for all capital budgeting activities and in designing a company’s capital structure. "&��4]UY��\�'����K���O\0u�������-Z]�Z.�����~|���9߽r��{�b�J��H������� ���S�ۼi����t��T����m&v$4�E��}�{ �t�֊݃�+X���L!H���1�hթ���*��Q���d����ت�8�.�3��b�و��f�_��(搪��)�K�KF��7��$�X��80��$?�&�����2�i���ř��@�z�/�X4�M�&���Ϥ3!Ґ΢��+��\�˜�!|^K���v�k�&����SM!�;=�e�^I�[BO;}*�jv���` �����:3$�ܡ蒪���t�GL#Q����2�n�yY�q6��%S����4��.y�t5= ���Fs�J4��:����]�N|����a�o�f���`�`�> ���5��ε T~�hL��4XI! DIVIDEND POLICY STATEMENT Introduction British American Tobacco Kenya plc (the “Company”) intends to pay dividends to its shareholders and will use the guidelines herein to determine and pay such dividend as is approved. Regular dividend policy: in this type of dividend policy the investors get dividend at usual rate. Would you like to get the full Thesis from Shodh ganga along with citation details? PDF | The aim of this article is to analyze the various aspects of dividend policy. A study by Amidu and Abor (2006) shows that dividend policy influences firm performance measured by its profitability. A firm paying this can persuade the shareholders and can magnify the credit in the market. Here the investors are generally retired persons or weaker section of the society who want to get regular income. This type of dividend payment can be maintained only if the company has regular earning. {+}uM�֧5c0�ޮ4k�����’x����V���!VՐ���~��O�a�t�VQ� �� Dividends are often part of a company's strategy. ADVERTISEMENTS: After reading this article you will learn about Dividend Policy:- 1. Current & prospective financial performance including Bank’s Net NPA ratio 2. 10/6/2020 Wiley CFA Exam Review - Level 2 - Lesson 3: Factors Affecting Dividend The exact amount of dividends that are paid out depends on the long-term earnings of the Every company, based on its plans and policies, will formulate the dividend policy, get it approved with investors, and will be kept publicly on the website. The payout is the balance of earning per share given to the shareholders in the form of dividends. Impact of Trade Cycle: During inflation or when the organization lacks adequate funds for business expansion, the company is unable to provide handsome dividends. DIVIDEND POLICY In this section, we consider three issues. Dividends and dividend policies are important for the owners of closely held and family businesses. Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage. Issues concerning dividends and dividend policy have always posed challenges to both academics and professionals. dividend distribution policy which shall be disclosed in their annual reports and on their websites and the dividend distribution policy shall also include certain stated parameters. Stable, constant, and residual are the three types of dividend policy. 3. This paper. %���� Factors Affecting Dividend Policy – Various Factors that have a Bearing on the Dividend Policy Maximisation of owners’ wealth is the objective of the financial manager’s job. In doing so, you forfeit ($9£1:10) = $9.90 at date 2. 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