First of all, the consideration factors should be considered from three aspects:
1. First, laws and policies. The legal factor is to protect creditors.
2. Second, the company's own development factors determine the profit form.
3. The third is the requirements of shareholders and investors, and the distribution method is set.
Profit distribution content: 1, withdrawal of provident fund, 2, distribution of dividends.
Dividend forms include: 1, cash dividend; 2. Property dividends; 3. Debt dividends; 4. Share dividends.
Second, the residual dividend policy.
This is a dividend policy based on meeting the company's capital needs first. According to this policy, the company determines its dividend distribution according to the following steps: 1, and determines the best capital structure of the company; 2. Decide the company's capital demand for the next year; 3. Determine the amount of shareholders' equity that needs to be increased to meet the capital demand according to the optimal capital structure; 4. First, the after-tax profit of the company meets the growing demand of the company in the next year, and the rest is used to distribute the cash dividend of that year.
Third, the dividend policy of fixed or sustained growth.
The determined cash dividend distribution amount is the primary goal of profit distribution, and generally does not fluctuate with the fluctuation of capital demand. This dividend policy has the following two advantages:
1, the stable dividend amount gives a stable message to the stock market and company shareholders.
2. Shareholders of many long-term investors (including individual investors and institutional investors) hope that the dividend of the company can become a stable source of income "in order to arrange consumption and other expenses. The policy of stabilizing the dividend amount is conducive to the company to attract and stabilize the investment of these investors.
Adopting a stable dividend policy requires the company to make a good judgment on its future ability to pay. Generally speaking, the stable dividend amount determined by the company should not be too high, and there should be room to avoid the dilemma that the company is unable to pay.