1, residual dividend policy: refers to the company's calculation of the amount of equity capital required for investment according to the target capital structure when there are good investment opportunities, and the surplus is retained first, and then distributed as dividends, that is, the net profit first meets the company's capital needs, and dividends are distributed if there are surpluses; Otherwise, no dividend will be paid.
2. Fixed or stable dividend policy means that the company will fix the annual dividend amount at a certain level, or on this basis, maintain a certain fixed proportion and grow steadily year by year.
3. Fixed dividend support rate policy means that the company distributes a certain proportion of annual net profit as dividends to shareholders.
4. Low normal dividend plus extra dividend policy? It means that the company sets a lower normal dividend amount in advance, and distributes dividends to shareholders in addition to the normal dividend amount every year, and also pays more dividends to shareholders in years when the company has more surplus and abundant funds.
Extended data
The main factors affecting the company's dividend distribution policy are as follows:
1, various constraints
Contract constraints. When a company borrows long-term debt, the debt contract usually has certain restrictions on the company's cash dividend, and the company's dividend policy must meet the constraints of this contract.
Legal constraints. In order to safeguard the interests of all parties concerned, the laws of various countries regulate the company's profit distribution order and capital adequacy ratio, and the company's dividend policy must conform to these legal norms.
Cash adequacy constraints. The company must have enough cash to pay cash dividends. If the company doesn't have enough cash, the cash dividend it pays will be limited.
2. Investment opportunities
If the company has many investment opportunities and large capital demand, it is likely that the company will consider paying less cash dividends and spend more profits on investment and development. On the contrary, if the company has fewer investment opportunities and less capital demand, it is possible for the company to pay more cash dividends. Therefore, when determining its dividend policy, the company needs to make a better analysis and judgment on its future development trend and investment opportunities as one of the bases for formulating dividend policy.
Cost of capital. A joint stock limited company shall maintain a relatively reasonable capital structure and cost. When determining the dividend policy, the company should fully consider the number and cost of various financing channels, so as to make the dividend policy consistent with the company's ideal capital structure and capital cost.
Solvency. Solvency is a basic factor to be considered when a joint-stock company determines its dividend policy. Dividend distribution is cash expenditure, and a large amount of cash expenditure will inevitably affect the company's solvency.
Therefore, when determining the amount of dividend distribution, the company must consider the influence of cash dividend distribution on the public's solvency, ensure that the company can still maintain a strong solvency after cash dividend distribution, and safeguard the company's reputation and lending ability.
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