The policy a company uses to decide how much it will pay out to shareholders in dividends.
Lots of research and economic logic suggests that dividend policy is irrelevant (in theory).
Investment dictionary. Academic. 2012.
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Dividend policy — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
Dividend policy — An established guide for the firm to determine the amount of money it will pay as dividends. The New York Times Financial Glossary * * * dividend policy UK US noun [C] ► FINANCE the method a company uses to decide how much it will pay as dividend … Financial and business terms
dividend policy — Standards by which a firm determines the amount of money it will pay as dividends. Bloomberg Financial Dictionary * * * dividend policy UK US noun [C] ► FINANCE the method a company uses to decide how much it will pay as dividend to shareholders … Financial and business terms
dividend policy — A most common form of life insurance policy issued under a plan whereby each policyholder pays annually in advance a fixed sum which, when added to like payments by others, probably will create a fund larger than necessary to meet all maturing… … Ballentine's law dictionary
dividend policy — A company s policy on the extent to which profits should be distributed by way of dividends to shareholders and on the extent to which profits should be retained in the business … Accounting dictionary
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 in a perfect capital market. The New York Times Financial Glossary … Financial and business terms
deferred dividend policy — A policy of life insurance wherein it is stipulated that the insured is not entitled to any part of the surplus or dividend, otherwise accruing upon the policy annually, until the expiration of a dividend period, which may be 5 years, 10 years,… … Ballentine's law dictionary
annual dividend policy — A policy of life insurance upon which there is an annual distribution of dividend. 29 Am J Rev ed Ins § I 11 … Ballentine's law dictionary
Tax Differential View Of Dividend Policy — The belief that shareholders prefer equity appreciation to dividends because capital gains are effectively taxed at lower rates than dividends. Corporations that adopt this viewpoint generally have lower targeted payout ratios, or a long term… … Investment dictionary
Signaling view (on dividend policy) — The argument that dividend changes are important signals to investors about changes in management s expectation about future earnings. The New York Times Financial Glossary … Financial and business terms