Stock Dividend Agreement

We have reviewed the dividend policy of all listed companies, which we believe are reasonably comparable to the company. I don`t remember the exact numbers, but I think the average dividend yield for listed companies was 3%. When I analyzed the private company, it was clear that it was still growing a little faster than the public, so the final recommendation for a dividend was about 1.5% of the value. Let`s start with the obvious observation that your company has a dividend policy. It may not be a formal directive, but you do. Every year, every business earns money (or not) and generates (or not) cash flow. Let`s assume for now that a company makes positive profits, as we defined the term above. If you think about it, there are only three things that can be done with a company`s revenue: we now focus on each of these seven factors that you need to know about your company`s dividend policy. In short, your dividend policy influences your return on investment in your company as well as your current returns on that investment. As a result, bond investors do not care about the dividend policy of a given company, since their interests are determined from their bond investments. As mentioned above, a stock dividend increases the number of shares while reducing the share price. By lowering stock prices through a stock dividend, a company`s stock can be more “affordable” to the public. .

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