Reported in The Edge (31/1/07) Tenaga Nasional Bhd (TNB) is now reviewing its dividend policy to reward shareholders. This is particularly so  with its rising spare cash so as to make this utility stock more appealing, especially to foreign investors. 
According to Chief executive officer Datuk Seri Che Khalib Mohamad Noh:-
·      when the company was […]

In my earlier article on the different schools of thought pertaining to the effect of dividend payout ratio, irrespective of the impact to its share price, there is a need that before we can determine an appropriate dividend policy, the company needs to embark on the following steps:

Estimating Future Residual Funds

Determine an appropriate target payout […]

In a public listed company, the spread of shareholding is wide. Because of this diversified shareholder mix, any dividend payout will disappoint at least some of the shareholders. Therefore the main question is whether a company’s choice of dividend policy can affect its share price.
To answer the question, we need to understand the different schools […]