Explanation, Policy, Dividend Distribution Strategy and Market Reaction Dividend Announcement

Impact of Dividend Strategy:
Stock price: High dividends can increase the stock price.
Investor confidence: A consistent dividend policy can increase investor confidence.
Capital structure: High dividends can lower the debt-to-equity ratio.
Company growth: Low dividends can allow the company to invest more in growth.

 
Example of Dividend Distribution Strategy:
High growth company: Set a low payout ratio to finance expansion, and increase dividends gradually as profits grow.
Mature companies: Implement a constant dividend policy to provide stable income for investors.
Companies with profit fluctuations: Implement a residual dividend policy to adjust dividends to varying profitability.
It is important to remember that the right dividend strategy will vary for each company. Companies should consider their unique situation and goals when choosing the optimal strategy.