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Chapter 10

Dividend and Payout Policy

Cash Dividend Payments
Cash Dividend Payments
A dividend is a portion of a company's profits distributed to shareholders as a reward for their investment. Companies pay dividends to share their ...
Dividend Policy
Dividend Policy
A company's dividend policy determines what portion of its earnings is distributed as dividends to shareholders and what portion is retained for ...
Factors Supporting Low Dividend Payout
Factors Supporting Low Dividend Payout
A low dividend payout occurs when a company retains most of its profits and gives only a small dividend to the shareholders. This strategy is common for ...
Factors Supporting High Dividend Payout
Factors Supporting High Dividend Payout
A high dividend payout occurs when a company distributes a relatively high portion of its profits as dividends to shareholders. This suggests that the ...
Stock Repurchases
Stock Repurchases
Stock repurchases, also called share buybacks, occur when a company buys back its own shares from the stock market. By doing so, the company reduces the ...
Stock Dividend
Stock Dividend
A stock dividend is a payment made by a company to its shareholders in the form of additional shares rather than cash. This increases the number of shares ...
Stock Split
Stock Split
A stock split occurs when a company divides its existing shares into multiple new shares to enhance liquidity and affordability. While the company's ...
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