An Appraisal of Dividend Policy of the Selected Textile Companies of Bangladesh

Abstract

Appraisal of the dividend policy, identify the problems of its dividend policy, and suggest remedial action for improvement of the dividend policy of selected textile Companies. Here we have the data from 2009-2013. We have net income, dividend, EPS, retained earnings. Growth in net income is even more important than sales because net income tells the investor how much money is left over after all of the operating costs are subtracted from sales. Dividend payout ratio was in increasing trend for most of the companies but in sometimes the dividend payout ratio was decreasing trend because of net income negative growth rate . Most of the companies declared cash dividend. And Square Textiles Limited declares both stock and cash dividend in every year to their shareholders. On the other hand, some companies also declared stock and cash dividend but not in every five years. From 2009 to 2013, EPS is increasing and decreasing respectively. It is fluctuating in this time period. EPS was not same in those years. Even the EPS was decreased. So the growth of EPS was also negative in the particular years. The growth of Earning per share is decreasing each year which is not good for both the firm and for the shareholders. The following years the EPS is consolidated.