Abstract
This paper explains that investors in the stock market keep track of a variety of measures and benchmarks for determining value and for choosing what stock to buy and when to sell. The author notes that investors can gain value not merely from selling their stock but from earning dividends. The paper relates that the traditional fundamental strategy is to think of oneself not as a purchaser of shares of stock, but as a purchaser of companies.

From the Paper
"Investors in the stock market keep track of a variety of measures and benchmarks for determining value and for choosing what stock to buy and when to sell. Investors can gain value not merely from selling their stock but from earning dividends, and this raises the question of what may be the relationship between stock price and dividends paid. Jeremy J. Siegel notes that the price of stock is like any other financial asset in that it "equals the present value of the expected stream of future cash payments to the owner," which themselves are uncertain and are "subject to the earnings of the firm": The uncertainty contrasts sharply with cash payments to bondholders, the value of which is fixed by contractual obligation."

Tags:stock, price, dividends

Abstract
In this article, the writer notes that stock buy-backs and one-time special dividends have accounted for sixty-three percent of total dividends of companies in the United Kingdom since 2003. The writer notes that ordinary dividend growth has failed to keep pace with earnings growth in the United Kingdom as well as the rest of Europe. The writer discusses that while one would not expect this to be necessarily bad news for the investor, European companies have discovered that their buy-back and special dividend preferences in recent years have failed to boost companies' share prices. As a result, they are now turning back to increasing dividends as the preferred way to return capital to investors This paper discuses the advantages and disadvantages of stock buybacks and dividends so that stockholders can make more informed investment decisions.

Outline:
Introduction
Stock Buybacks
Stock Buyback Advantages
Stock Buyback Disadvantages
Dividends
Advantages of Dividends
Disadvantages of Dividends
Recommendations

From the Paper
"Stock buybacks improve a firm's financial ratio. Although a stock buyback reduces cash, return on assets increases because the cash component of assets on the balance sheet is reduced. Return on equity increases because there is less outstanding equity. The buyback also helps to improve the company's price-earnings ratio due to the reduction in outstanding share. All of these metrics, particularly the price-earnings ratio, are considered important metrics to judge investment in a company and their improved positions due to the stock buyback may lead to additional stock demand/appreciation. In addition, stock buybacks send a strong signal to the market that a firm's management believes the shares are undervalued."

Tags:investor, capital, gains, investments

Abstract
The paper discusses how dividends are often viewed as a measure of a company's financial and operational stability, with dividend growth an indication of success and dividend decline an indication of financial trouble. The paper then explains that in as much as dividend policy is viewed in certain ways by the market, for management it is viewed as a way to send signals to the market. The paper looks at the reasons why a company would not pay dividends and discusses the different ways in which a company can pay out a dividend.

From the Paper
"Companies pay out dividends for a few different reasons. The first is that the income stream helps to attract investors. Theoretically, the value of a company's stock is the net present value of all future cash flows, and dividends are those cash flows. In practice, investors also seek capital gains, but the income stream from dividends remains attractive in that it provides a degree of certainty with regards to the future cash flows.
"The degree of certainty is provided by the fact that dividends are often viewed as a measure of a company's financial and operational stability. A company typically only decides to pay dividends once it achieves stability. Moreover, once a dividend is set, companies are reticent to decrease that dividend because such a move will cause the stock value to fall, reducing the firm's attractiveness to investors. So not only does the presence of a dividend indicate a degree of stability, but dividend growth does as well; and a decline in dividends is viewed as being indicative of financial trouble."

Tags:investors, stability, cash, flow, revenue

Abstract
There is a certain category of investor for whom the only buying requirement is that a stock pay good and regular dividends

From the Paper
"SHOULD PUBLICLY HELD CORPORATIONS PAY DIVIDENDS

Definitions
In the following discussion, the term "dividend" shall be defined and used as follows:
* It is a "voluntary" payment that a company makes to its investors on its outstanding shares.
* It can be made on two types of stock -- common and preferred.
* Dividends are paid from corporate funds called "retained earnings and the amount is set by a company's "dividend policy."

Discussion
There is a certain category of investor for whom the only buying requirement is that a stock pay good and regular dividends ..."

Abstract
This paper discusses the efficient market theory, the Modigliani-Miller (MM) cost of capital argument (and its relevance to dividend policy) and the clientele effect. Dividend policy and the clientele effect should properly be seen as specific topics within the broader realm of modern finance theory. The reason for this, quite simply, is that these concepts are best understood when placed within a more complete and general theoretical framework - and modern finance has provided just such a framework: the efficient market theory. This theory provides a comprehensive and unifying explanation of the workings of the market and by virtue of its stature, it affects virtually all aspects and interpretations of finance today. With this in mind, the departure point for this paper is an explanation of the theory of efficient markets. Then, having provided this "foundation," the two concepts of dividends and clientele effect are thoroughly analyzed and their validity more accurately judged. Only by placing these concepts within a larger theoretical framework can the reader appreciate all the implications which arise.

From the Paper
"However, the authors of this theory acknowledge that this only applies in a perfect world, and here is where academic theory like the efficient market needs to be modified to reflect the real world. In reality there are a number of imperfections which could affect dividend policy and they can be roughly divided into three categories (Campbell and Gray). The first set can be grouped and labeled as those factors arguing against high divident payout. These include personal taxes (where "dividends are taxed, but capital gains are deferred"), transaction costs (which result from reinvesting the cash), as well as the particular firm's financing costs."

Tags:Eugene, Fama, share, stockholders

Abstract
The paper looks at what a public company does with its earnings and discusses two common uses for earnings: rewarding shareholders with dividends, and reinvesting in the company. The paper relates that a company's dividend policy is a highly strategic component of financial management, as it can have an impact on the company's share price. This paper examines the relationship between dividend policy and share price through four models: the Graham and Dodd model, the Walter Model, the Gordon Model and the Miller and Modigliani Model.

From the Paper
"What does a public company do with its earnings? There are two common uses for earnings: rewarding shareholders with dividends, and reinvesting in the company. A company's dividend policy is a highly strategic component of financial management, as it can have an impact on the company's share price. This paper will examine the relationship between dividend policy and share price through four models: the Graham and Dodd model, the Walter Model, the Gordon Model and the Miller and Modigliani Model. There are many sub-policies that constitute a dividend policy, but for the..."

Tags:share, price, dividend

Abstract
This is an edit of a thesis on dividend policy in Kuwait, with six pages of additional text included. The writer provides a general idea about dividend policy and then offers a brief history of concerning dividends. The writer also offers an
overview of the Kuwait Exchange Stock market.

From the Paper
"This chapter will provide the necessary information and background of the research area. It is starts by giving a general idea about dividend policy then a brief historical facts of concerning dividends after. After that an over view of the Kuwait Exchange Stock market is provided followed by the problem definition then. The research objectives methodology and research limitations are then detailed and at the end of this chapter thesis structure is presented. Dividend policy is defined as the payout ..."

Tags:dividend, policy, thesis, Kuwait, Middle East

Abstract
This paper explains that, when the corporation makes a profit then they have to pay taxes on the profit that it earn, then this profit is distributed as dividends and there is a second tax at the time of this distribution. The author points out that companies regularly paying high dividends usually are associated with stable and high earning companies; however, it could be a trick by a company, which is not performing well, to make its share price appear to deserve higher ratings based on the dividend that it is paying. The paper relates that the process of finding out dividend yield for a publicly traded company requires knowing the shareholders' cash dividends and the price of the share on that date.

From the Paper
"Another return to stockholders is suggested through share purchases and this is seen not to help the long term stock holders at all. When the company pays to the stockholders an amount more than the book value of the share, they are actually reducing the book value by that much. This is against the general purpose of the management of a company which should increase equity of shareholders at all times, buybacks at prices greater than book value does not achieve it. In the market situation of today, the shares of very few companies are sold at prices below the book value, and even when they do, the company itself may be financially very weak to conduct such a program."

Tags:buybacks, double-tax, yields, payout, market-values

Abstract
This paper discusses stocks. It defines stock dividends and gives an example of stock dividends in a fictitious company. It then discusses stock splits and gives an example of a situation involving stock splits. The paper then compares stock dividends to stock splits and it discusses how a company would decide whether it wants to use a stock dividend or a stock split.

From the Paper
"Stock dividends are normally paid in common shares, and are used instead of a cash dividend to pay the stockholders. Therefore, if the stockholder owned hundred shares of a company that had declared a 1 % stock dividend, then it would mean that the stockholder would receive one more share of stock from the newly formed reserves of the company. A company that wished to tighten its financial belt would choose the option of stock dividends instead of cash dividends, because of the simple fact that this would help to conserve cash, while at the same time allowing its shareholders to benefit from its share holdings and earnings. A stock split, which is nothing but an increase in the company's outstanding common stock, means that the company's market price per share would be adjusted. (Equities: stock splits and dividends)"

Tags:shares, stockholder, liability

Abstract
This paper examines the role of financial management, which is to choose a correct financial mix that gets a return as per the current cost of money and is also commensurate with the type of assets that the financing has been used for. Differing options are analyzed in order to determine the method for getting the best yield. Various theories are discussed in order to reach the conclusion as to which financial methods are best applicable to businesses.

Introduction
Analysis
Investment in Firms
Miller-Modigliani Theorem
Impact of Taxes
Impacts of Bankruptcy
Dividend Signaling
Clientele Effect
Conclusion
Bibliography

From the Paper
"All stockholders in a business expect to earn money from the business and this is given in the form of returns and these are dividends and stock buybacks. The method to be used depends on the preferences and types of stockholders who have invested in the business. The main aim in any business is always to achieve the highest possible returns. One of the best ways of making money for the shareholders is to have a good amount of debt. This happens as the company management has only got to makes fixed payment for debt. These payments are composed of the repayment of the debt and the concerned interest. There is the greatest requirement to pay these in time, as if these are not paid, the stockholder may end up loosing the business. The origin of debt can be from various methods and for small private businesses comes from bank loans. For large organizations whose shares are publicly traded, it comes from bonds. It should be remembered that all interest bearing liabilities, both of the short term variety as well as the long term variety are in the category of debt. (Corporate Finance: Lecture Note Packet 2)"

Tags:bankruptcy, taxes, miller, modigliani