Dividend Policy


DEFINITION of 'Dividend Policy'

The policy a company uses to decide how much it will pay out to shareholders in dividends.


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BREAKING DOWN 'Dividend Policy'

Lots of research and economic logic suggests that dividend policy is irrelevant (in theory).

  1. Record Date

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    A classification of trading shares when a declared dividend belongs ...
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  1. Are dividends considered an expense?

    Cash or stock dividends distributed to shareholders are not considered an expense on a company's income statement. Stock ... Read Full Answer >>
  2. What are the different ways a CEO could influence stock prices?

    Because the CEO is responsible for leading both the company’s short- and long-term strategies, the stock price reflects the ... Read Full Answer >>
  3. I would like to invest in a dividend-paying stock. How can I find out which stocks ...

    There are several accessible sources to help investors identify dividend-paying stocks. Here are a few we can recommend:   Generally, ... Read Full Answer >>
  4. Do mutual funds pay interest?

    Some mutual funds pay interest, though it depends on the types of assets held in the funds' portfolios. Specifically, bond ... Read Full Answer >>
  5. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  6. Do mutual funds pay dividends?

    Depending on the specific assets in its portfolio, a mutual fund may generate income for shareholders in the form of capital ... Read Full Answer >>

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