An Analytical Study On The Role Of Dividend Policies At Dxc Technologies

Abstract

Dividend refers to that part of net profits of a company which is distributed among shareholders as a return on their investment in the company. Dividend is paid on preference as well as equity shares of the company. On preference shares, dividend is paid at a predetermined fixed rate. But the decision of dividend on equity shares is taken for each year separately. A company should adopt a consistent approach to the dividend decisions on equity shares rather than taking decisions each year on a purely adhoc basis. A settled approach for the payment of dividend is known as dividend policy. Therefore, dividend policy means the broad approach according to which every year it is determined how much of the net profits are to be distributed as dividend and how much are to be retained in the business.