Dividend Policy
Dividend Policy Dividend policy is a financial decision in which company uses to decide how much it will pay to shareholders in form of dividends and how much to be plonked back into the firm. * It depends upon investment opportunities . * It involves relationship between cost and rate of return. * Company dividend policy is an important consideration for investor . -----> Types of Dividend Policy 1} Regular dividend policy * In this policy investor get dividend at usual rate * In regular dividend policy investor are generally retired persons or economically. * Investor involves who want to get regular income. * These investor prefer a regular income without much risk. 2} Stable dividend policy * Here the payment of certain sum of money is regularly paid to the shareholder * There are three types a) Constant dividend per share : Company create reserve fund. b) Constant pay out ratio : It means the payment of fixed percentage of earning a