Impact of Dividend on Investment Decision
Dividend policy has been an issue of interest in financial literature since Joint Stock Companies came into
existence. Dividends are commonly defined as the distribution of earnings (past or present) in real assets among the
shareholders of the firm in proportion to their ownership. Dividend policy connotes to the pay-out policy, Stability Dividend
and Bonus shares and Stock splits. which managers pursue in deciding the size and pattern of cash distribution to
shareholders over time. Managements’ primary goal is shareholders’ wealth maximization, which translates into maximizing
the value of the company as measured by the price of the company’s common stock. This goal can be achieved by giving the
shareholders a “fair” payment on their investments. However, the impact of firm’s dividend policy on shareholders’ wealth
is still a debatable issue
Accordingly, the paper attempts to answer the question: How to impact Dividend Policy determinants and Bonus shares and
Stock splits, Stability dividend given more significance by the Investment Decion in the Indian context.
Keywords - Dividend policy determinants, Stability dividend and Bonus Shares.