Dividend Policy

Dividend is the part of EAT (Earning after tax) which is paid to the shareholders as their share in profits of the company. There are not legal rules and regulation about dividend policy of company. Dividend policy of a company depends on various factors like availability of cash, stage of the company life cycle, market trends, future investment requirements etc. A finance manager should be very aware about the various aspects that affect the dividend policy of the company. 

Types of Dividend Policies
Regular dividend policy: in Regular dividend policy the shareholder get dividend at usual rate.
Stable dividend policy: in table dividend policy a certain sum of money is regularly made to the shareholders. This sum may be Constant as to dividend per share, Constant payout ratio or Stable rupee dividend plus extra dividend.

TYPES OF DIVIDEND
Dividend can be paid in various modes like
Cash Dividend
Stock Dividend
Bond Dividend
Property Dividend

CS Executive MODULE II Financial and Strategic Management paper will be conducted in multiple Choice questions (MCQ) pattern with negative marking for wrong answers. So it becomes important for CS executive students to practice online test series Financial and Strategic Management chapter Dividend Policy

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Online test series for CS Executive module II Financial and Strategic Management lesson Dividend Policy