Dividend Policy

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DEFINITION of 'Dividend Policy'

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

INVESTOPEDIA EXPLAINS 'Dividend Policy'

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

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RELATED TERMS
  1. Illegal Dividend

    A dividend declared by a corporation that is in violation of ...
  2. Ex-Date

    The date on or after which a security is traded without a previously ...
  3. Cum Dividend

    When a buyer of a security is entitled to receive a dividend ...
  4. Declaration Date

    1. The date on which the next dividend payment is announced by ...
  5. Payment Date

    The date on which a declared stock dividend is scheduled to be ...
  6. Ex-Dividend

    A classification of trading shares when a declared dividend belongs ...
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