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For a firm, a dividend policy can divide its net earnings into two sections, retained earnings and dividends, of which the latter is paid in cash. The policy mainly deals with the rules and regulations that support a company in its distribution of profits to its shareholders. The two broad categories that come under dividends are stable dividends and steadily changing dividends. To enable students to understand these concepts well, we have used the platform of myhomeworkhelp.com to chalk out a unique and innovative method of learning for them through provision of Stable Dividends Changing Dividends Assignment Help.
Know about Stable Dividends and Steadily Changing Dividends
Stable dividends are those that have been prefixed between the company authorities and the shareholders. In this case however, the investor is insured with a constant sum of payments that he would receive as dividend payments. So this safeguards his interests. Another form of dividends is the steadily changing one where no such insurance against downside risks are to be provided to shareholders of the firm. If financial policies indicate that a fall in dividend would be better for the company, shareholders will have to accept it howsoever. So the former policy generally serves the interest of investors while the latter makes it worthwhile for the company as a whole.
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