General objective of this article is to Define Dividend Policy. Stock dividend policy are payments that are made by a firm to its shareholders usually on the quarterly basis. It is typically the part of the company’s profits that were designated to be settled to stockholders as cash distribution or dividend yield. When a company brings in a profit or has a surplus right at the end of the year, the money paid as quarterly dividends can be utilized in two ways; it enable you to be re-invested back in to the company as retained earnings or the surplus can be paid out as dividends. Here also explain Quarterly Dividends and Calculating the Dividend Yield.