Dividend policy of DLF

-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)
 OBJECTIEVE OF FIRM

 Maximum shareholder wealth

• Dividends

• Capital gain
 ISSUES IN DIVIDEND POLICY

• Payout ratio

• Retention ratio
 DIVIDEND

 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.
 Form of dividend

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

 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.
Factors influencing dividend policy :

 Past dividend rate Age of company

 Liquidity of funds
 Stability in earning
 Expectations of shareholders
 Legal restrictions
Dividend Relevance or Irrelevance

 Relevance : Walter’s Model

 Irrelevance: Miller- Modigliani Model

 Stability Of Dividend

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

Major projects

Homes

Offices

Retails
HOLDING OF DLF LTD.
SHARE HOLDING PATTERN OF DLF LTD.
DIVIDEND DISTRIBUTION OF DLF
Market Price of DLF LTD.