Dividend policy refers to the strategy a company employs to decide how much of its earnings will be distributed to shareholders in the form of dividends. It encompasses the decision-making process regarding the frequency and amount of dividend payments, as well as the overall approach toward sharing profits with investors. Companies may adopt various dividend policies, such as a stable dividend policy, where dividends remain consistent; a progressive dividend policy, where dividends increase over time; or a residual dividend policy, where dividends are paid from remaining earnings after all profitable investments are funded. The choice of dividend policy can significantly influence investor perception, stock price, and the company’s ability to attract investment. It reflects the firm’s financial health, cash flow situation, and growth prospects, balancing the needs of shareholders for income with the company’s need for reinvestment in growth opportunities.
Henkel plans to increase its dividend to 2.04 euros per preferred share, up from 1.85 euros, enhancing shareholder returns amid economic challenges. Despite a complex global landscape, Henkel achieved a…