Dividend and Dividend Policy

Tema	Ekonomika
Tipas	Referatas
Aprašymas	Darbas anglų kalba. Dividendai. Dividendų rūšys. Dividendų politika įvairiose įmonėse. Introduction. Types of dividends. Cash. Stock. Other. Dividend-Paying Methods. Residual. Stability. Hybrid. Dividend policy. Dividend policy types. Dividend policy theories. Dividend Policy types used in practice. Conclusion. Literature.
Patalpinta	2009-04-19
Parsisiuntė	68
	Parsisiųsti28 KB

Išsamus aprašymas

Introduction

Companies that earn a profit can do one of three things: pay that profit out to shareholders, reinvest it in the business through expansion, debt reduction or share repurchases, or both. When a portion of the profit is paid out to shareholders, the payment is known as a dividend.(http://beginnersinvest.about.com/od/dividendsdrips1/a/aa040904.htm)
In English Wikipedia is written that dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. (http://en.wikipedia.org/wiki/Dividend)
Then you want to make a financial decision, you have to look at dividend policy and what rise it will make to ceiling‘s stock‘s value, and, how it will suit shareholders needs. A company's dividend policy is the company's usual practice when deciding how big a dividend payment to make. Dividend policy may be explicitly stated, or investors may infer it from the dividend payments a company has made in the past. If a company states a dividend policy it usually takes the form of a target pay-out ratio. If a company has not stated a dividend policy then investors will infer it. (http://moneyterms.co.uk/dividend-policy/).

Work purpose:
In this work we will try to look over what is dividend, dividends types and dividend policy.

Work tasks:
• Understand what is dividend and find out dividends types;
• Find out what are dividend paying methods;
• Find out what is dividend policy and find out its types;
• Establish basic dividend policy theoretical propositions, their differences;
• Look over what dividend policy types are used in practical.
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2. Types of dividends

"Money For Nothing" is not only the title of a song by Dire Straits in the '80s, but also the feeling many investors get when they receive a dividend. All you have to do is buy shares in the right company and you'll receive some of its earnings. ( http://www.investopedia.com/articles/stocks/07/dividend_implications.asp ).
Dividends can be payed in cash or stock.
2.1. Cash
In the majority of cases dividends are issued on a cash basis. For example, if a shareholder holds 1,000 shares and the per share dividend is $1, the investor will receive a check for $1,000 (http://www.mysmp.com/fundamental-analysis/dividends.html).
In Investopedia is written that a cash dividend is a payment made by a company out of its earnings to investors in the form of cash (check or electronic transfer). This transfers economic value from the company to the shareholders instead of the company using the money for operations. Cash dividends is that receivers of cash dividends must pay tax on the value of the distribution, lowering its final value. Cash dividends are beneficial, however, in that they provide shareholders with regular income on their investment along with exposure to capital appreciation. (http://www.investopedia.com/ask/answers/05/stockcashdividend.asp).
English Wikipedia gives such a definicion of cash dividends : are those paid out in the form of a check. Such dividends are a form of investment income and are usually taxable to the recipient in the year they are paid. This is the most common method of sharing corporate profits with the shareholders of the company. For each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the cash dividend is $0.50 per share, the person will be issued a check for 50 dollars. (http://en.wikipedia.org/wiki/Dividend).

Raktiniai žodžiai

• dividend policy wikipedia
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• types of dividend policy