Dividend distribution policy

The dividend distribution policy is a company's approach to sharing its profits with shareholders. It outlines how much money the company plans to pay out as dividends and how often, balancing the need to reward investors with retained earnings for growth. Some companies pay regular dividends, while others reinvest most profits to expand the business. This policy reflects the company's financial health, growth strategy, and shareholder expectations, providing clarity on future income prospects and influencing investor decisions.