Calculation of the total amount of dividend payments and making a decision on the amount per ordinary share.
Posted: Wed Jan 22, 2025 10:54 am
This stage is especially important for the company's owners, since it is here that the issue of the amount of profit for the reporting period that they can use for their own needs is decided. To a large extent, the decision to issue dividends is determined by the stage of the enterprise's life cycle.
In particular, if a company plans to implement a program of technical re-equipment, the funds for which must be obtained from the sale of new shares, then the owners will have to adhere to a policy of paying out high shares of profits over a long period of time. In this case, it will be possible to expect that the value of the shares will increase, and this will allow attracting the necessary amount of investment.
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Monitoring the results and making changes to the dividend policy.
The DP is intended for long business owner database can help-term use. However, economic realities may necessitate its modification before the expiration of the established term.
The introduction of all sorts of adjustments is dictated by the need to increase the economic efficiency of the company and create the most attractive conditions for investors. The result of the transformations is an updated procedure for paying dividends. The corresponding changes are made to the approved regulation on dividend policy.
This description of the stages is approximate. Other conditions that are difficult to record in corporate documents may also have an impact. For Russian enterprises, for example, political and related economic conditions of activity have changed dramatically, which could not be foreseen in advance. Each company forms a dividend policy based on internal and external conditions of activity.
Factors Affecting Dividend Amount
In addition to those stated, several other conditions deserve attention, which are taken into account when determining the ratio of the reinvested portion of profit and the portion of profit that is directed towards dividends.
Legal acts
This refers to legal acts establishing the mechanism for dividend payments.
The main one is the federal law "On Joint Stock Companies". In accordance with it, the company's charter is adopted, which is its fundamental internal legal act.
For an enterprise in which the Russian Federation or its constituent entities are a shareholder, the government may establish additional requirements regulating issues of dividend payment.
In particular, if a company plans to implement a program of technical re-equipment, the funds for which must be obtained from the sale of new shares, then the owners will have to adhere to a policy of paying out high shares of profits over a long period of time. In this case, it will be possible to expect that the value of the shares will increase, and this will allow attracting the necessary amount of investment.
Read also!
"Absolutely Free Internet Advertising: 19 Options"
Read more
Monitoring the results and making changes to the dividend policy.
The DP is intended for long business owner database can help-term use. However, economic realities may necessitate its modification before the expiration of the established term.
The introduction of all sorts of adjustments is dictated by the need to increase the economic efficiency of the company and create the most attractive conditions for investors. The result of the transformations is an updated procedure for paying dividends. The corresponding changes are made to the approved regulation on dividend policy.
This description of the stages is approximate. Other conditions that are difficult to record in corporate documents may also have an impact. For Russian enterprises, for example, political and related economic conditions of activity have changed dramatically, which could not be foreseen in advance. Each company forms a dividend policy based on internal and external conditions of activity.
Factors Affecting Dividend Amount
In addition to those stated, several other conditions deserve attention, which are taken into account when determining the ratio of the reinvested portion of profit and the portion of profit that is directed towards dividends.
Legal acts
This refers to legal acts establishing the mechanism for dividend payments.
The main one is the federal law "On Joint Stock Companies". In accordance with it, the company's charter is adopted, which is its fundamental internal legal act.
For an enterprise in which the Russian Federation or its constituent entities are a shareholder, the government may establish additional requirements regulating issues of dividend payment.