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SELECTED DIVIDEND POLICIES IN NATURAL MONOPOLY
The dividend policy may affect the capital structure, too because if, for example, the enterprise determines a high level of yearly paid off dividends, subsequently the enterprise should reasonably maintain the low share of foreign capital in the capital structure to be able from the achieving an operating profit (profit from operating activities) covers not only its interest obligations, as well as the same level of dividends expected by investors. The dividend policy should not only be only a "remainder" that will be a rest after the investment and financial decisions of the company, but should be the equivalent part of them. The main advantage for applying a stable dividend policy is that the company would pay higher dividends to its owner company in this way. However, the main disadvantage of a stable dividend policy is the desire not to reduce the dividends paid; this may be a problem if the company's sales were negative.
Release: 2019/2 Pages: 6-16 JEL classification: L25, L26, G32
DOI:
Keywords: dividend policy, tax burden, Lintner model, future investments, dividends, Public investors
Section: ECONOMICS AND ECONOMY
Contacts:
Ing. Alena Bašová, PhD.
Dept. of Finances,
Faculty of National Economy
University of Economics in Bratislava
Dolnozemská cesta 1
852 35 Bratislava
e-mail: alenkabaso@gmail.com
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