Making the Perfect Decision on Dividend Policy

Primary objective of this article is to discuss on Making the Perfect Decision on Dividend Policy. Dividends decision is very important for any company for the reason that gains are realized although maintaining the holding associated with shares. Where as to build capital gains the investor should sell his possessing in share. As everybody knows, the main objective with the existence of any enterprise is maximizing the wealth with the share holders. This article briefly analysis four main policies which could be identified: Constant dividend policy, Constant growth in dividends, Constant pay out ratio and Residual dividend policy.