文档介绍：Chapter 18 Dividends and Dividend Policy
18
Dividends and Dividend Policy
Key Concepts and Skills
Understand dividend types and how they are paid
Understand the issues surrounding dividend policy decisions
Understand the difference between cash and stock dividends
Understand why share repurchases are an alternative to dividends
Chapter Outline
Cash Dividends and Dividend Payment
Does Dividend Policy Matter?
Some Real-World Factors Favoring a Low Payout
Some Real-World Factors Favoring a High Payout
A Resolution of Real-World Factors
Establishing a Dividend Policy
Stock Repurchase: An Alternative to Cash Dividends
Stock Dividends and Stock Splits
Cash Dividends
Regular cash dividend – cash payments made directly to stockholders, usually each quarter
Extra cash dividend – indication that the “extra” amount may not be repeated in the future
Special cash dividend – similar to extra dividend, but definitely won’t be repeated
Liquidating dividend – some or all of the business has been sold
Dividend Payment
Declaration Date – Board declares the dividend and it es a liability of the firm
Ex-dividend Date
Occurs two business days before date of record
If you buy stock on or after this date, you will not receive the dividend
Stock price generally drops by about the amount of the dividend
Date of Record – Holders of record are determined and they will receive t