Dividend policy of Dividend policy of DLFDLF

-BY-Aakshi Mahajan (BM 010186)

Amit Dubey (BM 010187)Anish kumar (BM 010188) Ankit Gupta (BM 010189)Ankur Garg(BM 010190)

Love Panwar (BM 010077)

Maximum shareholder wealth

• Dividends • Capital gain

OBJECTIEVE OF FIRM

• Payout ratio

• Retention ratio

ISSUES IN DIVIDEND POLICY

The term ‘dividend’ refer to that

part of divisible profits among its shareholders.

In other words, dividend is that portion of

company’s profit which is distributed among its shareholders as a percentage of par value of share or at a fixed rate per share

according to the decision of its board of directors.

DIVIDEND

Cash Dividend Stock Dividend or Bonus shares Bond Dividend Property Dividend Composite Dividend Optional Dividend Interim Dividend Special Dividend

Form of dividend

Dividend policy is a very significant financial decision.

It determines the divisions of earnings between payments to shareholders and retained earnings.

If the value of firm is a function of its dividend-pay-out ratio , the dividend policy will affect directly the firms cost of capital.

Dividend Policy

Past dividend rate Age of company Liquidity of funds Stability in earning Expectations of shareholders Legal restrictions

Factors influencing dividend policy :

Relevance : Walter’s Model

Irrelevance: Miller- Modigliani Model

Dividend Relevance or Irrelevance

Desirable policy considered by all the managements of the company.Stability of dividends means regularity of paying dividend annually.

3 forms- Constant Dividend or Dividend rate Constant Payout Constant Dividend per share plus Extra Dividend

Merits- Resolution of investors uncertainty

Stability Of Dividend

Homes

Offices

Retails

Major projects

HOLDING OF DLF LTD.

SHARE HOLDING PATTERN OF DLF LTD.

DIVIDEND DISTRIBUTION OF DLF

Market Price of DLF LTD.