How can I write a dividend policy?

is the aim of any business to achieve and grow profitability. Companies that report sharing sharing on financial markets have what to do with this income. Money can be used to reinvest in business or can be distributed to shareholders in the form of dividends. Dividend policy outlines expectations for such payouts, including how much, how often and what type of distribution will be carried out. Dividend shares provide investors' income flow, similar to conservative bond security, except for any profits gained in the value of shares. If you determine dividend policy and expect future changes, manage these expectations in the dividend framework so investors know what to expect. Provide a historical context for the performance of shares and profitability prices, so support for future profitability is justified for investors within politics.

you must have oWaiting and forecast for sale, clean income and other future earnings to create dividend policy. This is because future distribution to shareholders is dependent on continuing profitability and growth. If the acquisition of some type is expected in the near future, this could interfere with the company's plans for dividend payments and these payouts can be completely interrupted or canceled. If you currently know about future acquisition plans, it would not be misleading investors not to mention this possibility in this policy.

The frequency with which you intend to pay dividends of investors should also be outlined in dividend policy. Most of these distributions are carried out quarterly, but could also be limited to annual payouts. Distribuces can also be produced for investors in cash or through other shares. Dividend policy should clearly state the expected payment method.

understand that the Board of Directors of the Company must support dividend payments before distribution.When writing policies, consider that you will need to obtain the authority's approval to increase the value of dividends if the profits in the future exceed expectations. Investors can also disappoint in response to reduced dividends, so keep policy flexible and realistic enough to avoid disappointment.