Residual Dividend Policy
Hybrid Dividend Policy
Stable Dividend Policy
Under this policy, companies pay dividends from residual earnings after funding all profitable investment opportunities.
It prioritizes reinvestment in the business and aims to maximize shareholder wealth by ensuring every profitable project is funded first.
This policy commits to a consistent dividend payout over time and provides shareholders with predictable income
It aims to create investor confidence and loyalty by offering a steady stream of dividends despite the fluctuations in earnings.
This policy combines the aspects of both residual and stable policies.
It allows companies to distribute a base level of dividends while allocating excess earnings to growth opportunities.
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