Dividend payout policy
Dividends are paid in cash
They are often compared to accounting earnings
Dividend payout policy
Dividends per share = dividend payout
Earnings per share ratio
Dividends per share = dividend yield
Market price
Do dividends matter?
1) No, dividend policy is irrelevant
2) Yes, high dividends increase stock value
3) Yes, low dividends increase stock value
Dividend payment procedures
Quarterly
Holders of record
Declaration date
Date of record
Ex-dividend date
Payment date
Dividends are paid in cash
They are often compared to accounting earnings
Dividend payout policy
Dividends per share = dividend payout
Earnings per share ratio
Dividends per share = dividend yield
Market price
Do dividends matter?
1) No, dividend policy is irrelevant
2) Yes, high dividends increase stock value
3) Yes, low dividends increase stock value
Dividend payment procedures
Quarterly
Holders of record
Declaration date
Date of record
Ex-dividend date
Payment date