january 2011 Dividends: The 2011 guide to dividend policy trends and best practices Published by Corporate Finance Advisory For questions or further information‚ please contact: Marc Zenner marc.p.zenner@jpmorgan.com (212) 834-4330 Tomer Berkovitz tomer.x.berkovitz@jpmorgan.com (212) 834-2465 John Clark john.hs.clark@jpmorgan.com (212) 834-2156 Evan Junek evan.a.junek@jpmorgan.com (212) 834-5110 DiviDEnDs: ThE 2011 GuiDE To DiviDEnD poliCy TrEnDs anD BEsT praCTiCEs | 1 1. The
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An Empirical Analysis of Dividend Payout Policy Indian Corporate ABSTRACT In the present paper an attempt has been made to assess the dividend payout policies of Indian Companies. For the purpose of study BSE Sensex -30 companies have been selected as sample for the study. To study impact of profitability‚ liquidity and size of business on dividend payout regression analysis were carried out. An attempt has also been made to calculate estimated dividend payout based on regression results
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THE EFFECT OF DIVIDEND POLICY ON THE MARKET PRICE OF SHARES IN NIGERIA: CASE STUDY OF FIFTEEN QUOTED COMPANIES By Dr. J. J. Adefila Department of Accountancy‚ University of Maiduguri‚ Dr. J. A. Oladipo and J.O Adeoti‚ Both of the Department of Business Administration‚ University of Ilorin ABSTRACT The issue of how much a company should pay its stockholders‚ as dividend is one that has been of concern to managers for a long time. The optimal dividend policy of a firm may be defined as the best
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Dividend Theory 1. Discuss the factors which may impact on a firm’s dividend policy? .Industry and Company Variations Payout ratios vary amongst different industries e.g. firms within the telecoms and utilities sectors may typically payout around 60% of earnings in dividends‚ whilst retailers and computer software companies may typically payout around 20% of earnings in dividends Legal Constraints 1. Legal constraints can be viewed in the context of three broad areas;
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Dividend Policy: Clientele Effects and Signalling Model Literature Review Sharon Theresia 17132233 Corporate Finance 307 Singapore Campus Abstract Two of the most influential dividend policies are being reviewed and compared. in this paper‚ clientele effects and signalling model are two chosen policies. Findings implied that clientele is shaped by tax preferences of shareholders which in the end will determine companies’ ideal dividend policies. It is also believed that amount of paid dividend
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University of Hong Kong Dividend Policy Bank distributed a $6.30 dividend per share in 2008. If you purchased shares in Hang Seng Bank at $87 per share‚ the company’s dividend yield was 7.2% ($6.30/$87) which is much higher than the bank deposit rate. Dividend payout ratio is another important indicator: Dividend payout ratio = Dividend per share ÷ Earnings per share Dividend policy is the policy used by a company to decide how much it will pay out to shareholders in dividends. In your financial
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Dividend Policy Dividend policy Executive summary Once a company makes a profit‚ they must decide on what to do with those profits. They could continue to retain the profits within the company‚ or they could pay out the profits to the owners of the firm in the form of dividends. Once the company decides on whether to pay dividends‚ they may establish a somewhat permanent dividend policy‚ which may in turn affect investors and perceptions of the company in the financial
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management must decide on the form of the dividend distribution‚ generally as cash dividends or via a share buyback. Various factors may be taken into consideration: where shareholders must pay tax on dividends‚ firms may elect to retain earnings or to perform a stock buyback‚ in both cases increasing the value of shares outstanding. Alternatively‚ some companies will pay "dividends" from stock rather than in cash. The purpose of an optimal dividend policy should be to maximize shareholders’ wealth
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CHAPTER 13 DIVIDEND POLICY L E A R N I N G LG1 LG2 LG3 Understand cash dividend payment procedures and the role of dividend reinvestment plans. Describe the residual theory of dividends and the key arguments with regard to dividend irrelevance and relevance. Discuss the key factors involved in formulating a dividend policy. G O A L S LG4 Review and evaluate the three basic types of dividend policies. LG5 Evaluate stock dividends from accounting‚ shareholder
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Stability of dividend policy. There may be three types of dividend policy (1) Strict or Conservative dividend Policy which envisages the retention of profits on the cost of dividend pay-out. It helps in strengthening the financial position of the company; (2) Lenient Dividend Policy which views the payment of dividend at the maximum rate possible taking in view the current earing of the company. Under such policy company retains the minimum possible earnings; (3) Stable Dividend Policy suggests
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