Dividend Policy

Dividend policy - a dividend policy is the company's stance on how it will dispense its earnings.. It will include in its description the amount paid to shareholders ( if any) or if the company will retain the profits.. It will also outline when the dividends will be paid out , how much, and how frequent.. The profit, which is any positive gain, from any investment, or business venture, will be either dispersed to investors or shareholders, or it may be re-invested back into the company. The Dividend policy will explain exactly if the profit earnings will go the shareholders in full, or a portion may be obtained by the company for re-investment .