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Outline the objectivity of paying out dividends

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Reference no: EM132610781

"Companies listed on stock exchanges (such as the JSE, Dow Jones and FTSE) are mandated to release the results showing their financial performance during the previous financial year. On account of sound financial performances, the companies usually declare dividends to pay out to their investors. The decision to pay out dividends is based on a fulfillment of standards in a company's dividend yield, debt to equity ratio and payout ratio, among others."

Question 1: Outline the objectivity of paying out dividends by listed companies.

Reference no: EM132610781

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