Dividend policy is a company's decision to distribute the profits it earns to its shareholders in the form of dividends. Dividend policy is one of the policies that need to be implemented by the company to increase the value of the company. To determine the amount of dividends to be paid, management must have a dividend policy implemented in the company. Each company has a different dividend policy (Husam, 2010). The types of dividend policies that companies can implement include: constant payout ratio dividend policy, residual dividend policy, and low periodic dividend policy plus additions. In addition, there are several factors that can affect a company's dividend payment policy to its shareholders, such as the funds received by the company, profitable investment opportunities and its position. which in the dividend policy itself there is liquidity and asset performance where the funds received by a company are related to the company's profitability, namely the profit used to pay dividends. The higher the profitability, the higher the company's ability to generate net income (Garett, 2000).
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