A Comparative Study of Dividend Policies of Three Quoted Companies
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CFAO (Nig. ) PIC and Texaco (Nig.
) Pic". Since dividend policy is a policy decision whether all company's net earnings should be distributed to shareholders or a portion should be distributed and the balance retained.
Occasionally, such decision might be subject to the approval of the shareholders at the annual general meeting. While the retention of earnings enhances the growth of the firm, the shareholders may favor high dividend payout ratio to maximize their earnings, the problem then arises as to what dividend policies - the firm must adapt to carry along with it, the investors’ confidence and at the same time enhance the economic base of the firm.
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£27.18
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