The dividend Decision is one of the core elements of modern corporate financial management. A reasonable dividend Decision will help the company in the capital markets and establish a good corporate image for the company’s long-term development and create favorable conditions for the listed company’s financial decision-making, dividend Decision has a positive significance.
Appropriate dividend distribution Decision can not only set a good corporate image, but also to build the confidence of investors in the company’s future prospects, thus creating a good corporate financing environment, the company’s long-term stable development.
The present project aims to study the need for dividend Decision; study the different theories on dividend Decisions; determine the growth rate based on return on equity; and review the dividend Decisions of top automobile companies.
Automobile companies generally follow a Decision of announcing dividend in proportion to their earnings. The average Dividend Payout Ratio of automobile companies is around 30% which means that they are paying out 30% of their earnings in the form of Dividends.