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Dividend policy is a financial policy that provides a fixed amount of cash to shareholders on an annual basis. Dividends are usually paid out in cash, but some companies may choose to pay them in stock or other securities.
The company's dividend policy is designed by the board of directors and approved by shareholders. The dividend policy can be determined by the company's financial condition, industry trends and other factors.
There are four types of dividend policies:
- Regular dividends
- residual dividend policy
- no dividend policy
- stable dividend policy
Dividend policy is a plan that a company's board of directors implements to determine how much dividends the company will pay out to shareholders.
There are three types of dividend policies:
1) Pay-out policy: The company pays out all its earnings in dividends.
2) Dividend reinvestment policy: The company reinvests all its earnings back into the business.
3) Dividend retention policy: The company retains some of its earnings for re-investment and pays out the rest in dividends.
Dividend policy is a set of rules that defines how a company distributes its profits to its shareholders.
There are two types of dividend policies:
- Regular dividend policy: Dividends are distributed to shareholders on a regular basis.
- Optional dividend policy: Dividends are distributed to shareholders only if the company has surplus profits after meeting other expenses.
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