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Perfect market view (of dividend policy) |
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Perfect market view (of dividend policy)Analysis of a decision on dividend policy, in a perfect capital market environment, that shows the irrelevance of dividend policy.Perfect market view (of dividend policy) Similar MatchesDividend Discount ReturnDividend Discount ReturnThe rate of return which equates the present value of future expected dividends with the current market price of a security. DividendDividendThe amount paid each quarter by a corporation to its stockholders for each share of stock. Dividend coverDividend coverThe ratio between a company's earnings (net profit after tax) and the net dividend paid to shareholders, calculated as earnings per share divided by the dividend per share.So if a company has earnings per share of 8p and it pays out a dividend of 2.1p, the dividend cover is 8 / 2.1 = 3.80Generally speaking, a ratio of 2 or higher is considered safe (in the sense that the company can well afford the dividend), but anything below 1.5 is risky. If the ratio is under 1, the company is using its retained earnings from a previous year to pay this year's dividend. Ex dividendEx dividendPurchase of shares without entitlement to current dividends. This entitlement remains with the seller of the shares. Dividends received deductionDividends received deductionA corporate tax deduction on income allowed by company A that is in ownership of shares of company B and receives dividends on the shares of company B. Further Suggestionsunpaid dividendDividend trade roll or play Dividend payout ratio Dividend capture Ex dividend Unpaid dividend Participating dividend income dividend Dow dividend theory Traditional view (of dividend policy) With dividend dividend growth stock dividend Residual dividend approach Outstanding Dividends Dividend Order Interim dividend Accumulated dividend Selling dividends Insurance dividend Discounted dividend model (DDM) Expected dividend yield interim dividend Optional dividend year end dividend |
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