Dividend policies
By skalijnp
@skalijnp (147)
India
November 28, 2009 1:36am CST
some portion of the net earnings of a firm is paid out to its shareholders, it is called dividend.While taking decisions regarding dividend payments become relevant. In fact, the firm has to choose between distributing its net profit among the shareholders and ploughing back of net profits into the business. thus there reamains an inverse relationship between the reatined earnings.
1 person likes this
2 responses
@jackee (138)
• United States
1 Dec 09
All I know is that when the companies I own send me a dividend, I reinvest the amount and buy more shares, and the stock really starts to grow. I generally buy gas, and oil trusts which pay about 9% which is pretty good in todays market.
@michaeldadona (5684)
• Malaysia
28 Nov 09
Receivable dividends referred to classes of shares. There are divided into three (3) major type of shares;Ordinary Shares, Preference Shares, and Deferred Shares.
Whereas, if ours under the 'Preference Shares', we have to determine for which one is ours from its sub-dividends;
1. Cumulative preference shares,
2. Non-cumulative preference shares,
3. Participating preference shares,
4. Non-participating preference shares,
5. Redeemable preference shares, and
6. Convertible preference shares.
Where I knew all of those? I am an American and living as an expatriate in this country. Before I step my feet in this country and do my business, I have to learn about Company Formation. I have to select which type of company must I select to establish one company in foreign country, to register as international or local.
So, talking about dividends disbursement, everything has been stipulated in each type of share that we participated. Similarly, in one company for which share debentures provided by the company provided to their employees completely with its category and policies.
