Week 7 Dividend Policies Management Essay Research

Dividend Policies
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Companies in the stock market have options regarding what they would want to do with their dividends. It is possible for companies to follow a dividend payout policy wherein the stockholders will be able to get a percentage when profit is distributed, on the other hand, it is also possible for the companies to follow a dividend retention policy, wherein the profit is not given out to the stockholders.
An example of a company which practices dividend payout policy, and is actually one of the companies who give the highest dividend yield, currently at 4.4% is LYB or LyondellBasell Industries NV. This company is involved with chemicals and plastics, known as one of the largest in the whole world. LYB may prefer dividend payout because paying dividends will be seen as a strength by the investors, making the stocks more saleable, which in turn will eventually increase the stock price. This will also be beneficial due to the volatility of this ...