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Dividend Policy Decisions-An Introduction
SUBJECT : Financial Management
PUBLISHED ON : 16/09/13
NUMBER OF PAGES : ( 13 Pages)
PRICE : Rs 9.75

Dividend refers to the divisible profits of a company distributed or divided among its shareholders in proportion to their share holdings as specified in the memorandum of association and articles of association. In short, dividend is the share of profit of a company distributed as dividend among its shareholders. It can also be defined as the return on the money invested by the shareholders on the share at a company. Dividend is that portion of earning which is distributed among shareholders. Thus, dividend policy determines the division of earnings between payments of shareholders and retained earnings. Retained earnings are one of the most significant Sources of internal funds for financing of corporate growth, but dividends constitute the outflow of cash that accrue to equity shareholders.

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