On what basis dividend percentage calculated by any Ltd. company ?
It has been always a point of concern that does a profit making company distribute a
part of profit to its stockholders as dividend ? ..
If yes then how much they gonna pay ? The amount we always come to know that
company is going to pay 100% dividend ,200% dividend or 50% dividend etc. But the point is on what basis they shall give 100% or 200% etc.Is it decided on
company's share price ?
Well it is decided over 'Face value' of company's share price.
Let us consider that a company's share price quote at $10 and its face value is $2 and company has decided to pay 100% dividend to its shareholders.Then this
means that company is going to pay $2/equity share hold by it shareholders.
Other examples: If dividend is 40% then they gonna pay $2*(40/100)=> $0.8 per share. If dividend is 400% then they gonna pay $2*(400/100)=> $8 per share.
part of profit to its stockholders as dividend ? ..
If yes then how much they gonna pay ? The amount we always come to know that
company is going to pay 100% dividend ,200% dividend or 50% dividend etc. But the point is on what basis they shall give 100% or 200% etc.Is it decided on
company's share price ?
Well it is decided over 'Face value' of company's share price.
Let us consider that a company's share price quote at $10 and its face value is $2 and company has decided to pay 100% dividend to its shareholders.Then this
means that company is going to pay $2/equity share hold by it shareholders.
Other examples: If dividend is 40% then they gonna pay $2*(40/100)=> $0.8 per share. If dividend is 400% then they gonna pay $2*(400/100)=> $8 per share.
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