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Dividend Policy in Financial Management

Learn Dividend Policy Dividends are those earnings which are distributed among stockholders of a company. These earnings are paid either in cash or in stock, generally on a quarterly basis and may be paid only out of retained earnings, not from invested capital. Dividends are only paid when the company’s profitability can support this payout. The more and regular the company’s profitability, the regular the payment of dividends. The amount of dividend paid for each share depends on the organization’s [...]