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(^344) Financial Management
Diversified "We regard shareholders as partners. They deserve handsome
returns. We give good dividends and periodic bonus issues."
Diversfied "We have a very conservative dividend policy. Our dividend rate
which used to be 10 per cent four years ago has now been raised
to 15 per cent. We won't probably consider a change for the next
few years.
Truck "The company follows a conservative dividend policy which aims
at protecting the interests of the shareholders and the company by
(a) providing a consistent and reasonable return to the (b)
shareholders, and (c) ploughing back profits to take care of
contingencies and to improve the equity base.
Pharmaceuticals "We distribute about 30 per cent of our earnings. We maintain our
dividend around 18 per cent. When the reserves position permits
and the earnings potential justifies, we issue bonus shares."
Diversified "We don't have a specific dividend policy. When the profits are
good and liquidity satisfactory we give 12 per cent to 15 per cent
as dividends.
Textiles "Due to drop in profits we have skipped dividends. We will try to
restore it-when I don't know."
Storage "We have been paying steadily about 20 per cent as dividends."
"Of course, our bonus record is poor. In the foreseeable future
there may be very little change."
Diversified "The investor is the king. Unless he is rewarded, we can't get the
funds for our growth. So, we try to benefit him by dividends, bonus
issues, and rights issue."
Consumer Electronics "We paid good dividends a profits were high. We will try to
maintain the same. Of course, profitability will be the key factor."
Diversified "We have, if you permit me to say, an obsession with 20 per cent
dividend rate. We don't want to raise it to 25 or 30 per cent as this
connotes super profits--but we would like to declare bonus shares.
Our planning revolves around this compelling goal-dominant
Some Types
On the basis of the above responses we find that most of the firms pursue three types
of policies: