Learn about factors involved in corporate dividend policy decisions from a certified public accountant (CPA)

What you will learn

Explain the factors involved when making corporate dividend policy decisions

Describe dividend policy as it relates to phases in the corporate life cycle

Discuss the impact shareholders have over dividend policy

Explain dividend payment terms

Compare stock dividends and cash dividends

Describe when a company may use stock dividends

Discuss the concept of a stock split

Explain when a company may use a stock split

Description

This course will cover corporate dividend policy.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

Dividends represent earnings that a corporation distributes to owners. Dividends for a corporation can be compared do withdrawals from a sole proprietorship or partnership. However, there are substantial differences between a partnership withdrawal and a corporate dividend due to differences in the business structure.

A partner in a partnership generally has more control over the amount of draws they can take and when they can take them. Different partners may also draw different amounts at different times.

By contrast, a corporation must give uniform distributions of dividends to each class of shares, resulting in far less direct control by an individual shareholder to determine the amount of dividends or when they will be distributed.

The dividend distribution policy of a corporate can be very complex, involving many factors, including the life cycle of the company, the cash flow of the company, and the preferences of the shareholders.

A company that is in the growth phase of its life cycle is more likely to have smaller dividends, preferring to reinvest the money to grow operations. Shareholders who would like to invest over a longer time frame may like this policy because the increase in value of the company will increase the value of the shares.

A company in a mature phase of the life cycle may not have as much need to reinvest earnings and is more likely to distribute earnings to shareholders. Many investors like investing in dividend yielding companies because they receive a return on their investment in the form of dividends.

English

Language

Content

Introduction

1805 Dividend Policy

1810 Other Things That Impact Dividend Policy

1815 Dividend Payment Terms

1820 Stock Dividend

1825 Stock Split

Practice Probs. – Dividend Policy

1813 Payout Ratio

1814 Payout Ratio, Dividends Per Share, Dividend Yield

1816 Retained Earnings & Dividend Limits

1817 Dividend Projection Life Cycle

1818 Stock Split & Stock Dividend

1819 Dividend Payout Policy Analysis

1820 Annual Dividend Yield, EPS, & Price Earnings Ratio

1821 Earnings Per Share, Dividends Per Share, & Dividend Yield


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1822 Ex Dividend Stock Price

1823 Stock Dividend & Cash Dividend Impact on Equity Section

1825 Dividends vs Investment Analysis

1826 Dividend Policy Impact on Price or Stock Value

1827 Stock Split 3 for 1 and 2 for 1

1828 Stock Dividend Impact on Equity & Investor Value

1829 Stock Dividend & Impact on Investor Holdings

1830 Reverse Stock Split

1831 Stock Repurchase vs Cash Dividend

1832 Dividend Payment Policy

Excel Probs. – Dividend Policy

1813 Payout Ratio

1814 Payout Ratio, Dividends Per Share, Dividend Yield

1816 Retained Earnings & Dividend Limits

1817 Dividend Projection Life Cycle

1818 Stock Split & Stock Dividend

1819 Dividend Payout Policy Analysis

1820 Annual Dividend Yield, EPS, & Price Earnings Ratio

1821 Earnings Per Share, Dividends Per Share, & Dividend Yield

1822 Ex Dividend Stock Price

1823 Stock Dividend & Cash Dividend Impact on Equity Section

1825 Dividends vs Investment Analysis

1826 Dividend Policy on Price of Stock Valuation

1827 Stock Split 3 for 1 and 2 for 1

1828 Stock Dividend Impact on Equity & Investor Value

1829 Stock Dividend & Impact on Investor Holdings

1830 Reverse Stock Split

1831 Stock Repurchase vs Cash Dividend

1832 Dividend Payment Policy