Dividends ________ declared for past years in respect of which the accounts were already closed.
According to you, which company is in a position to declare high dividends?
Corporate India has opened its purse strings to shareholders with interim dividends and bonus shares. At least 60 companies have declared an interim dividend or announced plans to do so in the first weeks of January. Also, around 12 companies have announced bonus share issues this month, about three times more than January 2006. There is a range of things that a company can do for maximising shareholder value, and the dividend is the most direct and simple form of it. Ideally, companies need to balance the value of the stock for total shareholder returns. This trend of dividends and bonuses is in synchronisation with the good profits being posted by companies. It is a way of rewarding shareholders. Many companies have also announced plans of bonus shares for their shareholders. Most of the companies who have already declared bonus issues or announced that they would be taking it up in their next board meeting are small or mid-sized companies. What factors are considered while taking this decision?