4. Meaning of divident
• A divident is that part of the profits of a
company which is distributed among its
shareholders
• It is the reward to shareholders
5. •It is the return or reward
that a shareholder gets from
the company on his
investments
6. Different types of dividents…
• Cash divident
• Liquidation divident
• Stock divident
8. The relationship between retained
earning and divident is inverse.If
we provide more ,the retained
earnings will be low and vice
versa
9. Divident decisions
• Divident decision implies attitude of the
management concerning the quantum of
profits to be distributed as dividends
• Divident is distributed either out of
current years profits or accumulated
profits
10. • It is based on this policy
decisions relating to the pattern
of divident is made
12. Internal factors
• Legal factor
• General state of economy
• State of capital market
• Taxation policy
13. External factors
• Magnitude and trend of earnings
• Desire of the shareholder
• Nature of industry
14. • Age of the company
• Future financial requirments
• Liquidity
15. Overview
• A divident is that part of the profits of a
company which is distributed among its
shareholders
• There are 2 factors affects divident
decisions, namely internal and external
