dividend policy


A company's stance on whether it will pay out profits as dividends or keep them as retained earnings. If the company decides to issue dividends, the policy will outline whether or not the dividends will be issued on an ongoing basis, or if the dividend payout will be infrequent.

Use dividend policy in a sentence

If you are going to pay bonuses to your workers you need to decide if you want to use a dividend policy or not.

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You should always try to make sure that you know where you stand in regards to the dividend policy and do it correctly.

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The dividend policy was quite interesting to me and I was very happy to get going and deciding whether we would pay out profits or keep them.

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Lintner's Model dividend irrelevance theory