Section 3
Setting the Dividend
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
3 concepts
Setting the Target Payout Ratio
Companies determine what kind of investors they want to attract and the investment opportunities they face before setting the target payout ratio.
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Residual Dividend Model
The Residual Dividend Model first uses earnings to finance new projects, then distributes the remainder as dividends.
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Methods of Paying Dividends
Dividends, which are distributed based on how many shares each person owns, can be paid using cash, stock, or other company property.