Dominion recently announced a new dividend policy that will give 60% to 65% of operating earnings to shareholders.
Mr Capellas must declare an explicit dividend policy, which he can change only with the consent of shareholders.
Seadrill initiated its dividend policy last year, the payout ratio is above 100%, and the company has a lot of debt.
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The company also set a new dividend policy: the company will pay 12 cents quarterly, for an annualized yield of about 1.2%.
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How a company is structured, its physical locations and assets, its management, its ability to efficiently finance its operations, and its dividend policy all factor into performance.
Newmont Mining, for instance, established a novel dividend policy (linked to the price of gold), and is expected to increase their quarterly dividend by 25% this July as a result.
That idea made so much sense that the two companies had reached agreement on most of the issues usually impeding cross-border mergers, such as legal structure, governance arrangements, business strategy and dividend policy.
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The company might be generating cash flow but many investors like to see management pay this cash to shareholders and many investors take the dividend policy into consideration before buying stocks, especially in consumer related sectors.
The dividend payout policy of Citigroup, Bank of America, even JPMorgan Chase is absurd.
Goldman officials hoped to win clearance quickly, but the request has been caught up in the wider process of setting a dividend-increase policy for all U.S. banks overseen by the Fed, said people familiar with the matter.
So, for example, he says that if - as now - there is evidence that banks are creating too little credit for the health of the economy, the Financial Policy Committee should perhaps have an explicit power to limit dividend payments by banks, so that the banks retain more capital to underpin lending.
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